Tue, 07 Feb 2023 Today's Paper

Ship agents cry foul over new levy on bunkering services

30 January 2013 03:02 am - 0     - {{hitsCtrl.values.hits}}

A A A

The imposition of a 5 percent Ports and Airports Levy (PAL) on bunkering services, a move currently under review by the government, could have serious negative implications on operators, according to Ceylon Association of Ships’ Agents Chairman, Ralph Anandappa.

Speaking at a panel discussion on Tax in the Supply Chain, organized by the Chartered Management Institute in partnership with KPMG, Anandappa warned that the imposition of PAL would result in Sri Lankan operations losing competitiveness as operators would be forced to out-price themselves further.

“At present, bunkering costs in Sri Lanka are high at around US$ 75-100 per tonne. However if the levy is imposed then prices would go up to between US$ 110-150 per tonne, and this will lead to the withdrawal of much business meaning negative implications for ships’ agents and service providers including the port of Colombo,” Anandappa said.

According to him, the bunkering business is estimated to currently generate Rs.800 million in turnover, Rs.750 million of which goes to the government.

“The Magam Ruhunupura Mahinda Rajapaksa port is also trying to establish bunkering operations, but I feel that if the government goes ahead with the imposition of PAL, this business will be wiped out and that will mean large losses of foreign currency for the government and it will totally take away any profit margins for operators,” he stressed.

The move from the government was drafted to be effective from the January 1, 2013. However, following lobbying from stakeholder organizations; the government has since suspended the levy and is currently reviewing the decision.

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

Pain and punishment

Should we spare the rod and spoil the child? Does it really happen? Children

Health System in the emergency room

Sandya Kumari from Kotahena has been experiencing chest pains since 2015 and

Canada’s targeted sanctioning of Gota and Mahinda

History was made last week when two former executive presidents of Sri Lanka

SC judgement on Easter attack: Court rules negligence stood in the way of avoiding most heinous crime

“On the ill-fated day of 21st of April 2019, this island home was awoken ru