The Sri Lanka Ceramics Council (SLCC) has called for the removal of the recent additional tax on LPG gas for the survival of the ceramic industry.
SLCC President and Chairman/ Managing Director Midaya Ceramics D. Warnakulasooriya said that the recent additional tax on LPG gas on the Ceramic industry impacted badly on the survival of the industry. The ceramic industry consumed a high amount of LPG during the production process.
Today LPG gas prices have been reduced in the international market but local ceramic manufacturers have to pay a high price for LPG which will increase our production costs. We are unable to compete in the international market and survive in the business, he said.
SLCC Past President, Chairman/MD Dankotuwa Porcelain Sunil Wijesinghe said there was a Rs 8 excise duty per Kg last December and it was increased to Rs 27.50 per Kg in February. The current total LPG gas consumption by the Ceramic industry is 1,170 metric tons per month and with this tax the industry has to pay Rs 32.17 million more per month.
This is a huge burden for the industry and we call upon the government to remove this tax and help the industry to survive in this global economic meltdown. The appreciation of the Rupee and high diesel prices in the local market impact on our operations. Policy makers need to be aware of this, he said.
Thailand is one of the main international competitors and they pay Rs 35 per Kg for LPG and inBangladesh it is Rs 18. In Sri Lanka companies pay Rs 125 for a Kg. Due to high production coststhe volume of orders has declined and buyers are demanding a price reduction.
The SLCC also pointed out that if the authorities could facilitate the ceramic industry, it couldbring in more foreign exchange and generate more job opportunities in the country. SLCC Vice President/Managing Director Lanka Tile Ltd/ Lanka Walltiles M. Jayasekera said both companies consumed 550 metric tons of LPG gas per month which cost Rs 15 million additionally per month. At present the price of one MT of LPG is USD 456 but we are paying USD 800 per MT.
If the authorities are unable to take corrective action it will impact on the government’s revenue collection and result in the closure of ceramic factories, he said. Chairman/MD Royal Fernwood Porcelain J. Pieris said this industry needs high investments and they had invested Rs 1.2 billion and borrowed money to complete the investment. Now nearly 30 percent of our income goes to settle bank loans. This sector needs a lot of working capital. With this tax the price of inputs has increased by 35 percent and now it is difficult for us to find adequate funds to meet our working capital, he said
Resource: Daily News | SLCC calls for removal of additional tax on LPG
Previous Post: Ceramic Industry News: History of Ceramic Tiles
SLCC President and Chairman/ Managing Director Midaya Ceramics D. Warnakulasooriya said that the recent additional tax on LPG gas on the Ceramic industry impacted badly on the survival of the industry. The ceramic industry consumed a high amount of LPG during the production process.
Today LPG gas prices have been reduced in the international market but local ceramic manufacturers have to pay a high price for LPG which will increase our production costs. We are unable to compete in the international market and survive in the business, he said.
SLCC Past President, Chairman/MD Dankotuwa Porcelain Sunil Wijesinghe said there was a Rs 8 excise duty per Kg last December and it was increased to Rs 27.50 per Kg in February. The current total LPG gas consumption by the Ceramic industry is 1,170 metric tons per month and with this tax the industry has to pay Rs 32.17 million more per month.
This is a huge burden for the industry and we call upon the government to remove this tax and help the industry to survive in this global economic meltdown. The appreciation of the Rupee and high diesel prices in the local market impact on our operations. Policy makers need to be aware of this, he said.
Thailand is one of the main international competitors and they pay Rs 35 per Kg for LPG and inBangladesh it is Rs 18. In Sri Lanka companies pay Rs 125 for a Kg. Due to high production coststhe volume of orders has declined and buyers are demanding a price reduction.
The SLCC also pointed out that if the authorities could facilitate the ceramic industry, it couldbring in more foreign exchange and generate more job opportunities in the country. SLCC Vice President/Managing Director Lanka Tile Ltd/ Lanka Walltiles M. Jayasekera said both companies consumed 550 metric tons of LPG gas per month which cost Rs 15 million additionally per month. At present the price of one MT of LPG is USD 456 but we are paying USD 800 per MT.
If the authorities are unable to take corrective action it will impact on the government’s revenue collection and result in the closure of ceramic factories, he said. Chairman/MD Royal Fernwood Porcelain J. Pieris said this industry needs high investments and they had invested Rs 1.2 billion and borrowed money to complete the investment. Now nearly 30 percent of our income goes to settle bank loans. This sector needs a lot of working capital. With this tax the price of inputs has increased by 35 percent and now it is difficult for us to find adequate funds to meet our working capital, he said
Resource: Daily News | SLCC calls for removal of additional tax on LPG
Previous Post: Ceramic Industry News: History of Ceramic Tiles
No comments:
Post a Comment