Import tax on ethanol used for disinfectant liquids to be raised

The import tax on ethanol used for manufacturing disinfectant liquids, reduced during the Covid-19 pandemic, has been increased to its previous levels, the Ministry of Finance says.

Finance State Minister Ranjith Siyambalapitiya says the government expects to collect tax revenue of Rs. 1.6 billion through this import tax hike.

When the Covid-19 pandemic was prevalent, ethanol was imported to the country in large volumes for the manufacturing of disinfectant liquids. Accordingly, the import tax on ethanol was reduced on two occasions on April 30 and June 09.

Meanwhile, the government has decided to raise the tax on toddy from Rs. 25 per litre to Rs. 50 per litre.