Rumours have been swirling that the newly revised rice tax applies across the board, but Minister of Trade Wasantha Samarasinghe dismissed those claims in Parliament yesterday (04). He clarified that the Rs. 280 per kilogram import levy applies solely to Jasmine rice and sticky rice, rejecting claims that it includes varieties like Nadu rice.

The Minister stated that both varieties were taken off the special trade concession list and placed back under the standard import levy. He asked both the public and media to check the official Harmonised System (HS) codes before jumping to conclusions.

Why the change happened

According to the Minister, tourist businesses were allowed to bring in Jasmine and sticky rice in 2023 through permissions granted by the Department of Import and Export Control. However, he pointed out that this setup lacked a proper regulatory system to track incoming stocks.

Following discussions, the Food Security Committee chose to bump the import duty on these two specialty items from Rs. 65 up to Rs. 280 per kilogram. The Ministry of Finance has already published a gazette notice detailing the affected varieties alongside their HS codes.

No shortage fears

Minister Samarasinghe called out specific media outlets for circulating misleading stories that failed to name the exact rice varieties involved. He insisted the move would not trigger any rice shortage in the country.

An expert committee has also been assigned to examine overall rice import volumes, local requirements, and how such imports impact domestic growers, aiming to bring order to the local market.