Essential food items, medicine exempted from all taxes

COLOMBO: Sri Lanka’s Finance Minister Basil Rajapaksa announced that the Cabinet of Ministers has decided to grant a special allowance of Rs. 5,000 per month to all government employees, starting from January 2022.

He stated that government pensioners and all disabled armed forces personnel will also receive this special monthly allowance of Rs. 5,000.

Meanwhile, the Samurdhi beneficiaries will be provided an additional Rs. 1,000 per month from January 2022.

Accordingly, the monthly allowance provided to Samurdhi beneficiaries will increase to Rs. 4,500 with this.

Finance Minister Rajapaksa announced these decisions during a press briefing held in Colombo following the conclusion of a Cabinet meeting.

The Finance Minister also announced that all essential food items and medicinal drugs will be exempted from all taxes.

He said essential food items including Dhal, big onions, potatoes and sugar will be exempted from taxes.

He announced that the purchase price of paddy from farmers will be Rs. 75 per kilogram from the Maha season. This is an additional Rs. 25 per kilogram of paddy from the current Rs. 50 per kg.

He said that no additional burden will be placed on the consumers as the cost for this is to be borne by the government.

Meanwhile he said that it has been decided to give an allowance of Rs. 5,000 to farmers engaged in home gardening below 20 perches while an allowance of Rs. 10,000 is to be provided for those with more than 20 perches and less than an acre.

He said that each household in the plantation sector will be provided with 15 kg of wheat flour per month at Rs. 80 per kilogram.

Rajapaksa said that the Cabinet has decided to appoint a Minister dedicated to each donor country and donor organizations in order to discuss and provide solutions to the current economic situation in Sri Lanka.