Friday, 29 March 2024
Tea industry demands govt. not to take over Cess

Tea industry demands govt. not to take over Cess Featured

Sri Lanka’s tea industry is opposing a reported government move to take over a cess fund charged from exports to promote Ceylon tea globally, and has demanded that if not the Cess be suspended.

“All stakeholders of the tea industry express their unmitigated and resolute opposition to the intention, as reported in the media, of the Ministry of Finance to appropriate the funds accumulated by the Sri Lanka Tea Board, which had been collected from the Industry, for Global Tea Promotion,” the Ceylon Chamber of Commerce said in a statement.

It said the government had pledged that the Global Tea Promotion Fund will be used exclusively for enhancing market opportunities for Ceylon Tea worldwide.

“Notwithstanding the protests of the industry, if the Government intends proceeding with this act, the industry will demand the immediate suspension of the Tea Promotion & Marketing Levy, as it will serve no further purpose,” the statement added.

The cess, at 3.50 rupees/kg of exported tea, was introduced in 2010 and was to be used for promoting Sri Lanka tea globally. The fund, now estimated at 6 billion rupees, is managed by the Sri Lanka Tea Board.

They appeal to the Government to reconsider this unfair action in deference to the pledge made to the Tea Industry that the Global Tea Promotion Fund will be utilized exclusively for enhancing market opportunities for Ceylon Tea worldwide, under the stewardship of the Promotion and Marketing Committee of the Sri Lanka Tea Board.

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