|
|
 |
 |
| Sunday, 21 September 2003 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Single tariff band opposed The proposal by the Tariff Advisory Council to introduce a single band of tariff for all imports, if implemented, will be detrimental to local industries, warns two premier chambers. The Ceylon National Chamber of Industries (CNCI) and the National Chamber of Commerce of Sri Lanka (NCCSL), in separate letters to Prime Minister Ranil Wickremesinghe, have shown the adverse effects the proposal will have on local industries. The proposed single band tariff rate of 10 per cent will be achieved by increasing the lower rate and decreasing the higher rate. Therefore, local industrialists will be affected in two ways. Raising the tariff on machinery and raw material to 10 per cent will add to the already high cost of production, making our products uncompetitive in the international market while the lowering of tariffs on imported goods will permit a flood of substandard goods. This will not only deprive the consumer of good quality products, but also wipe out local industries, resulting in closure of business and layoffs as it happened in the textile industry. President NCCSL Asoka Gunasekera said Sri Lanka cannot compete with imported goods especially from neighbouring India and China, which are heavily subsidised either directly or indirectly. There is no mechanism to enforce countervailing duties as well. "Therefore, if the Government wishes the private sector to lead the economy and create employment, counter-productive proposals of this nature should not be considered," he said. President CNCI Ranjith Hettiarachchy said: "If we are to consider such revisions, the State should support local industrialists with a reliable power supply at costs which are on par with competitors, improve the road and railway network for speedy transportation of goods, telecommunication services at prices on par with competitors, a single digit interest rate as well as reforms or deregulation in areas like land allocation, customs, port, labour and financial reforms". |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
