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The Economic Effects of Tax Cuts

In The News
18 March 2012

Ministry of Economic Development stated on 05th December 2011 that the President ratified the 9th amendment bill to Act number 31/79 (Export Import Act) on the 1st of December 2011.

The Act now states that 0% import duty is applied on all construction goods, fertilizers, environment friendly goods and all food products except those that can be produced locally.

This reduction is proposed to bring about positive changes to the market prices of essential products.

The Ministry of Economic Development has prepared an analysis on the anticipated market prices for 29 essential food products for the year 2011, after the reduction of import duty. The analysis shows that even with the inclusion of 6% GST, and allowing for the same rate of profit as currently applied to the products, the price of these products can reduce between 9% to 13% in the starting year.

In addition to this, the analysis is done to show the anticipated reduction in price of the specific items that are currently available in the market.

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