The Government has decided to introduce a new policy to streamline the beedi industry.
A discussion was held in this connection with all parties last week presided over by Chief of Staff to the President Sagala Ratnayaka on the instructions of President Ranil Wickremesinghe. The formulation of the policy has been assigned to the Ministry of Finance.
It has also been proposed to lift the cess of Rs.5,000 which is currently imposed on a kilo of beedi leaves. The Government also levies Rs. 2 on each beedi in addition to the cess on the import of beedi leaves.
It was revealed at the discussion that the Excise Department has introduced this system but it is not working properly.
It is said that a large quantity of beedi leaves is being smuggled into the country due to the cess levied on beedi leaves.
Therefore, it has been decided to streamline the beedi industry and the activities of the Excise Department.
Nearly 700 people are engaged in the beedi industry and it has been decided to lift the cess on the import of beedi leaves and increase the tax on one beedi to Rs. 3.50.
This amendment has been proposed so that even if other taxes are removed, income will not drop in any way. These policies will be implemented after discussion with President Ranil Wickremesinghe who is also the Minister of Finance.
