November 25, 2024
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    Removing the social security tax on the purchase of paddy, production of rice and marketing.

    February 28, 2023

    Removing the social security tax on the purchase of paddy, production of rice and marketing.

     


    Approval of the Cabinet of Ministers was granted to implement a programme to distribute Naadu rice that has been purchased by the Government for Rs. 100/- per kilogram with the objective of ensuring a fair price for the paddy farmer, among low income earners free of charge. In addition to the amount paid to the farmer per kilo of paddy, the paddy producers pointed out that an amount of approximately Rs. 6.00 / 7.00 has to be spent over a kilogram of rice as social security tax apart from the additional cost that has to be borne for water, electricity, storing, transport etc until the final product of one kilogram of paddy is produced and handed over to the customer within the process of rice production.

    They further pointed out that the farmers could be provided with a higher price is a certain concession can be granted to minimize the said cost. Considering those facts, the Cabinet of Ministers granted approval to the proposal tabled by the Hon. President as the Minister of Finance, Economic Stabilization and National Policies for revising the Social Security Contribution Levy Act No 25 of 2022 to release the purchase of paddy, production of rice and marketing so that the paddy farmers will be ensured of a higher price more than rupees 100/- per one kilogram of Naadu rice, sustaining the maximum price of rice existing within the market at present.

     

    Decisions taken by the Cabinet of Ministers on 27.02.2023

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