Cement manufacturers cut prices after tax revisions
Two of Sri Lanka’s largest cement manufacturers, Tokyo Cement Group and INSEE Cement (Siam City Cement [Lanka] Ltd.) announced last week that they would directly pass on the benefit of the Government’s tax concessions to the customers.
This announcement was made following the Government’s decision to remove the Nation Building Tax (NBT) and reduce the Value-Added Tax (VAT) from 15% to 8% effective from 1 December.
Tokyo Cement Group, the country’s largest manufacturer and supplier of cement, said that it will apply the tax benefit to all cement brands of Tokyo Cement with immediate effect.
“The tax revision which came into effect from 1 December is a welcome boost to the construction industry of Sri Lanka, which is currently on a significant growth trajectory. Passing on this benefit directly to all customers – both individual consumers as well as commercial users – will encourage this growth momentum and benefit the entire industry,” the company said in a press release.
Tokyo Cement products include Tokyo Super and Nippon Cement which together hold the largest share of the cement market. Nippon Cement Pro, on the other hand, is the only cement in Sri Lanka especially formulated to produce concrete that can reach the highest strength grades for high risers and super structures.
INSEE Cement added that any new guidelines issued by the Consumer Affairs Authority (CAA) with regard to the revised MRP (maximum retail price) will be immediately adhered to.
INSEE Cement is the only fully integrated manufacturer of cement in Sri Lanka. The company’s flagship brand Sanstha Cement is the first superior blended cement launched in Sri Lanka. Further, INSEE produces customised concretes (ready-mixed concrete) at the INSEE concrete manufacturing facility in Peliyagoda.