‘Cess’ – End the Deception and Build ‘Street Lights’

Abstract

In Sri Lanka, ‘Cess’ is the name given to a special tax imposed on sales, where the revenue is earmarked for a specific fund with a particular economic purpose. This article discusses how the government has stymied export promotion and local value addition by ‘stealing’ the Cess. Budget 2014 is poised to further the malpractice. The article concludes that the lack of trust in the government in providing appropriate support to exporters and arbitrary impositions of Cess are increasing uncertainty in the trading environment and export industries. It is counter-productive to export growth.