• Agri. Minister Amaraweera says Prez responded positively to request for same 

The President and Finance, Economic Stabilisation, and National Policies Minister Ranil Wickremesinghe has responded positively to a request made by Agriculture Minister Mahinda Amaraweera, not to apply the recent increase in Value Added Tax (VAT) on chemical fertilisers, according to the Agriculture Ministry.

The Government, in the midst of great public criticism, increased the VAT rate from 15% to 18% by 3% with effect from Monday (1).

Speaking to the media yesterday (2), subject Minister Mahinda Amaraweera said that all chemical fertilisers such as urea, muriate of potash, and triple superphosphate required for the Maha cultivation season have been brought into the country at previous rates, and that therefore, there is no possibility of their prices going up due to the VAT increase. If any trader sells fertilisers at higher prices, he requested the farmers to inform the Ministry of such individuals.

He also said that the Government is focused on excluding chemical fertilisers from the latest VAT revision. The Daily Morning contacted the Ministry’s Media Director Dharma Wanninayake to inquire more about the matter, and he said that Minister Amaraweera had requested President Wickremesinghe to exclude chemical fertilisers from the VAT increase. “The President responded to the request positively. So, we hope that the farmers will be able to purchase fertilisers at the current prices even in the coming Yala season.”

The Budget 2024 presented to the Parliament by President Wickremesinghe stated that the VAT rate would be increased up to 18% in January this year (2024) along with the elimination of the VAT exemptions other than for products related to the health and education sectors, and a few essential commodities.

Meanwhile, the Ministry had recently decided to merge the two State-owned fertiliser companies, the Ceylon Fertiliser Company Limited and the Colombo Commercial Fertilisers Limited. According to the Ministry, the two companies, that are currently under two Chairpersons and Boards of Directors, will be placed under one Chairperson and a Director Board under the proposed programme to merge them.