November 05, Colombo (LNW): Trade Minister Wasantha Samarasinghe has sought to clear up confusion surrounding the latest rice import tax revision, stressing that the increased levy of Rs. 280 per kilogram applies exclusively to Jasmine rice and sticky rice and does not affect other varieties, including Nadu rice.
Making the clarification in Parliament on 4 November, the Minister explained that the two imported varieties had been removed from a special trade concession arrangement and would henceforth be subject to the standard import duty of Rs. 280 per kilogram.
He cautioned against interpreting the revision as a blanket increase covering all imported rice, pointing out that Nadu rice remains outside the scope of the new tax arrangement. He also urged consumers, traders and media organisations to consult the relevant Harmonised System (HS) codes when determining which products are covered by the revised regulations.
Explaining the background to the decision, Samarasinghe said that in 2023, businesses operating in the tourism sector had been granted permission to bring in Jasmine and sticky rice with authorisation from the Department of Import and Export Control.
However, the arrangement had been introduced without an adequate regulatory framework to properly oversee and monitor the quantities being imported, raising concerns about the need for tighter controls.
Following consultations on the matter, the Food Security Committee decided to increase the import duty on the two varieties from Rs. 65 to Rs. 280 per kilogram.
The Minister further disclosed that a specialised expert committee had been established to examine the country’s rice import requirements, assess domestic consumption needs and study the possible consequences of importing these varieties on the local rice industry.
As part of the regulatory process, the Ministry of Finance has also issued a Gazette notification clearly identifying the two affected rice varieties alongside their respective HS codes, providing a formal reference for importers and other stakeholders.
Samarasinghe criticised certain media organisations for reporting the tax revision without adequately distinguishing between the rice varieties covered by the measure. He argued that such reporting had contributed to unnecessary confusion among the public and created the impression that the increased duty applied to a much wider range of rice imports.
Rejecting suggestions that the revised tax could trigger a shortage of rice in the domestic market, the Minister maintained that the decision was intended to address weaknesses in the existing import system, strengthen regulatory oversight and ensure that rice imports are managed in line with the country’s actual requirements.
He reiterated that the measure was specifically targeted at Jasmine and sticky rice and should not be interpreted as a restriction or additional tax on other commonly consumed varieties such as Nadu rice.
