Sri Lankan govt to remove customs duty on yarn

With a view to stimulate expansion of the country’s textile sector, Sri Lankan Government has decided to withdraw customs duty on yarn from January 2012.

The Government has also resolved to end Value Added Tax (VAT) on import of machinery required in textile manufacturing to enhance the country’s production capacity and boost export potential.

Releasing the Government’s new Budget Plan for 2012 in Sri Jayawardenapura-Kotte, President Mahinda Rajapaksa announced a series of new fiscal policies and taxation measures with the objective of boosting exports and strengthening the country’s economy.

The measures include devaluation of Sri Lanka’s national currency by three percent in order to increase the nation’s global competitiveness and boost export volumes.

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