Government removes cess on ivory paper boards to pacify printers
In an effort to help Sri Lankan printers aspiring to enter the export market with value added printing, the Finance Ministry has removed the cess on ivory paper board imports recently, a senior Customs official told the Business Times.
By relieving printers cum exporters from some import duty, it is expected to enhance the competitiveness of export production and encourage expansion of production capacities and exports, he said.
This move is aimed at encouraging domestic printers to go for value added printing with import inputs for the export market, he disclosed.
Sri Lanka's printing industry has welcomed the waiver of cess on ivory paper boards as the printers have sought corrective measures for import duty on the material and printed materials to safeguard the industry.
President of the Sri Lanka Association of Printers (SLAP) and Chairman/CEO Sharp Print Holdings Ranjith Fernando said that his association has made submissions to the Finance Ministry and Customs Department to remove cess on ivory board.
He noted that the cess imposed on ivory board, a multi- purpose board used from visiting cards to soft packaging, was irrational as importing it does not affect any local manufacturing.
Printers will lose the competitive edge if they have to pay more taxes on papers and boards; he said adding that their main challenge is the taxes on imported material for printing.
The government should consider the granting of more tax concessions for the local printing industry to build on its existing capacities to fulfil both local and export demand for higher value added products, he added.
The SLPA is constantly lobbying to gain more concessions and assistance from the government for the benefit of around 5000 printers countrywide, he revealed.
Packaging is a substantial element as far as value addition is concerned, he said adding that duty relief should be given to paper and board imports as local printers make major contribution for tea industry packaging.
He noted that printed cartons, printed notebooks are imported with no duty or less duty and this will adversely affect the industry.
SLPA is also suggesting some measures to discourage import of old machinery and promote modern digital/offset machines, he disclosed.
Sri Lankan manufacturers have proactively expanded their range of products to include a variety of novel, environmentally friendly items.
The country provides a wide range of products to the export market from commercial printing to quality packaging materials such as tea cartons, garment tags, and labels which provides a supporting service to major export sectors.
Currently local printing companies' exports go to many destinations around the world. The main exports are printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans, pulp of wood or of other fibrous cellulosic material; recovered ( waste and scrap) paper or paperboard, tea cartons, printed empty cartons, apparel inner cartons, printed paper board boxes (packaging boxes), corrugated cartons, etc.