Former UNP Deputy Leader and Parliamentarian Ravi Karunanayake has attributed the sharp rise in gold prices in Sri Lanka to the country’s existing tax structure.
Speaking to the media, Karunanayake said the primary reason for the increase in gold prices in the local market is the high level of taxes imposed on gold imports.
He noted that gold imports are subject to a cumulative tax burden of around 47 per cent, including VAT and other levies. According to him, this rate is significantly higher than those imposed by other countries in the region, such as India and Singapore.
Karunanayake pointed out that India, which previously imposed high taxes on gold imports, later reduced the rate to 6 per cent after taking into account issues such as smuggling and market distortions.
In this context, he stressed that Sri Lankan authorities should reconsider the current tax policy and introduce a more reasonable and affordable tax structure for gold imports, in order to ease pressure on consumers and stabilise the market.
