Sri Lanka reduces import tax for palm oil

(February 20, 2009) Sri Lanka government has reduced the import tax of palm oil from Rs. 60 to Rs. 35 per kilo since February 18, 2009.

A government spokesman said that this step was taken especially to redress the desiccated coconut manufacturers who had been stuck by the escalated coconut price.

With this move, the government also expects the price of coconut oil also decline.

However, the coconut industry of the country will be affected with this move, some analysts say. The government earlier imposed heavy taxes on palm oil claiming that they were to save the industry.

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