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 and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

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.

Ship agents cry foul over new levy on bunkering services

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Sri Lanka weighs Open Skies amidst plans for national carrier privatization

Man who jumped off Sri Pada Uda Maluwa and went missing, found

Two racing drivers arrested over Fox Hill tragedy

SL on alert on possible genocide allegations by Canada

Gota fires back at Cardinal, rebuts allegations

MIRROR CRICKET

Sahan Arachchige to lead Sri Lanka ‘A’

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

TODAY'S HEADLINES

Sri Lanka to establish new energy sector regulator

Cabinet nod to transfer China-built Mattala airport’s management to Indian, Russian joint venture

Sajith never attends dinners hosted by Ranil Wickremesinghe

One soldier dead, nine injured in road crash

Sahan Arachchige to lead Sri Lanka ‘A’

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand