Former Finance Minister calls for gold import tax reduction

​By Yohan Perera

​Former Finance Minister Ravi Karunanayake yesterday urged authorities to reduce taxes on gold imports, stating that high taxation has exacerbated local prices amidst soaring global trends. 

Speaking at a media briefing, Karunanayake highlighted that the current tax structures are placing an undue burden on the local market.

​“Heavy taxes have driven up gold prices in Sri Lanka. The total tax amounts to 47 percent, inclusive of Value Added Tax (VAT). This is significantly high, especially when compared to most other countries in the region, such as India and Singapore,” Karunanayake said.

​He further noted the disparity with neighbouring policies. “Although the tax rate on gold in India was previously high, the Indian government recently reduced it to 6 percent to support industrialists. Sri Lanka should follow suit,” he stressed.

​According to the Central Bank, the price of 24-karat gold shot up to Rs. 400,000 last week, while the Sri Lanka Gem and Jewellery Authority reported the price at Rs. 405,000.

​Karunanayake also called for a reduction in taxes levied on construction materials, such as cement, to control housing costs.

“Sri Lanka’s housing prices are the most exorbitant in the region,” he said.