February 1, 2013 10:39 AM

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New tax to hit industry already in crisis: Ceylon Tea Traders Assn

The Ceylon Tea Traders Association, CTTA, an apex industry association in Sri Lanka, says that the sudden increase of tax on tea exports will hit the industry that is already facing severe crisis.CTTA says that the unilateral and unexpected decision of the government to increase the tax came to light this Wednesday when a number of export consignments were held up at the port.The new tax has been imposed retrospectively and exporters will be affected to various degrees, depending on the stage at which export commitments are currently placed, says CTTA.Tea industry of Sri Lanka has been facing stagnation in production and exports and rise in costs during the last two years. Floods in 2010 and 2011 and drought in 2012 dampened production, while steady rise in labour costs have depleted margins.

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