Govt mulls lifting VAT on chemical fertilizers at next ‘Yala’ season

The government is mulling lifting the Value-Added Tax (VAT) on chemical fertilizer at the next ‘Yala’ cultivation season, says Minister of Agriculture Mahinda Amaraweera.

Addressing an event in Sooriyawewa, the lawmaker said he had taken up the matter with President Ranil Wickremesinghe. “As the Finance Minister, he [the president] has responded positively. 
Hence, I believe that we will be able to provide fertilizers [to the farmers] at current rates at the [next] Yala season.” 

The minister pointed out that raising the prices of Urea, Muriate of Potash (MOP) and Triple Superphosphate (TSP), currently sold in the local market, by adding the VAT is unnecessary.

Chemical fertilizers required for this Maha Season have already been imported to the country, Amaraweera continued, explaining that a price increase is not required, as the stocks were brought into the country at rates prior to the VAT hike.