Article: Increase in Gas tax shakes fragile ceramics industry

Colombo, March 19 -- In the backdrop of an ongoing financial crisis and rising recession around the globe, the world saw the highest-ever decline in oil and gas prices. It was therefore a surprise that the Sri Lankan Government further increased an excise duty on gas imports to Rs.27.50 per kilogram with effect from February 28th 2009 when a number of export-oriented industries were hoping that the Government would withdraw its earlier tax on gas which was Rs.8 per kilogram. "As an industry which accounts for USD42 million exports per year, we were hoping that we could be able to regain our losses and stabilize our sales due to the fall in oil prices. But now with these additional taxes on ...

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