The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Finance and Planning

¶ 01 Hon. Presiding Member, thank you. Several Opposition points on the Special Commodity Levy (SCL) regulations and the Customs motion are incorrect. We have not imposed new taxes; rather, we have adjusted structures without increasing the overall burden.

¶ 02 First Gazette: Under the Pakistan–Sri Lanka FTA, certain citrus (e.g., mandarins) qualify for duty-free “column duty.” However, an existing SCL of Rs. 120 per kg prevented that relief. We now replace the flat SCL with a tariff-based structure—20 percent or a minimum of Rs. 60—restoring FTA relief while maintaining roughly equivalent total incidence once VAT/SSCL apply. This avoids undue consumer price impacts while honoring the FTA.

¶ 03 Second Gazette: Potatoes and onions—no new levies. The existing SCL of Rs. 80/kg (potatoes) and Rs. 50/kg (onions), due to lapse on 25 November and 31 December 2025 respectively, have been extended. Unlike past ad hoc decisions (e.g., the notorious sugar duty cut done via a letter bypassing proper committees), we now have an institutional Food Policy and Security Committee vetting data and recommending measures, then Cabinet approval before gazetting and tabling in Parliament.

¶ 04 We prevented insider stockpiling: from June onwards, monthly imports of onions (~23,000 MT) and potatoes (~18,000–20,000 MT) remained within normal ranges, with no abnormal pre-emptive surges.

¶ 05 Third Gazette: In response to the “Ditva” cyclone, we temporarily exempted donated relief consignments from SCL under defined conditions to expedite assistance. Significant quantities—valued in billions of rupees—arrived and were distributed swiftly.

¶ 06 Fourth: The list of 62 items with SCL applicability persists through 31 December 2025. We have not newly imposed SCL on them; continuation aligns with revenue projections. Where warranted, we grant targeted relief: e.g., reducing SCL on fish (for salmon processing) from Rs. 400/kg to Rs. 6/kg; and on salt used for pharmaceuticals from Rs. 40/kg to Rs. 10/kg—clear concessions, not hikes.

¶ 07 This reflects good governance, due process, and transparency. Stabilization has taken hold.

¶ 08 On extending debate time: agreed.

¶ 09 Further, sustainable stabilization and price stability underpin investment. As Hon. Hizbullah noted, investor confidence is crucial; we are improving facilitation and legal frameworks. With stabilization, we achieved better-than-expected growth in 2025—on track to exceed 5 percent—contrary to previous volatile boom-bust cycles driven by unproductive debt and white-elephant projects (we identified ~2,700 abandoned buildings nationwide). In 2019, growth was already negative; now quarterly growth has trended up (Q1: 4.8%, Q2: 4.9%, Q3: 5.4%), inflation tamed from ~70 percent to within a path toward 5 percent over the medium term.

¶ 10 We will maintain budget discipline—using a supplementary estimate to address “Ditva” impacts without derailing planned capital outlays—and continue reforms to reach inclusive, sustainable growth above 7 percent in the medium term, as outlined by the Hon. President. Thank you.