Cess to be phased out and new customs duty structure introduced: Deputy Minister Anil Jayantha

12-Sep-2026

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The Government has decided to phase out the Cess imposed on imported goods with the objective of protecting domestic entrepreneurs and introduce a new customs duty structure, Deputy Minister of Finance and Planning Anil Jayantha Fernando said.

He made these remarks in response to questions raised by Opposition Leader Sajith Premadasa during the parliamentary sitting held on September 11.

Speaking further, he said:

“Although Cess has been imposed on imported goods with the objective of protecting domestic entrepreneurs, many domestic industries depend on imported raw materials. As the cost of those products has consequently remained high, steps will be taken to phase out the Cess gradually.

“Accordingly, Cess on intermediate goods will initially be phased out gradually, with a concessionary period. Through this approach, the Government expects to prevent adverse impacts on domestic industries, enable manufacturers to adapt to a systematic production process and reduce production costs by lowering the cost of essential raw materials.

“Accordingly, while abolishing the Cess, steps will also be taken to introduce a new customs duty structure. The new customs duty system will be introduced under four categories, with rates of zero per cent, 10–20 per cent and 30 per cent.

“Raw materials and goods used in manufacturing will be subject to a zero per cent duty, while imported finished products and selected goods will be subject to a new customs duty of up to 30 per cent,” he said.