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Apr 21, 2018

Tax exemptions on gold made SL a haven for smugglers

Due to the tax exemption that were given for gold, Sri Lanka had become a haven for smugglers, said Customs intelligence sources.

Although gold was imported during the period of tax exemptions, there was no recorded increase in gold production or export of made jewellery, it was reported.

According to Customs intelligence sources, in 2016, 9,148 kg of gold was imported into the country. In 2017,  15,757 kg of gold was imported. In January 2018 2,558 kg of gold was imported, while in February 2,571 kg of gold was imported and 3,231 kg in March totalling 8,360 kg of gold imported in the first three months of this year.

However, there was no recorded rise in the export of made jewellery nor was there a significant reduction in the price of gold in the domestic market.

The customs intelligence sources revealed that the gold that is being imported using the tax concessions is being illegally smuggled out of the country to India and several other countries.

However, the Finance Ministry had imposed a 15% tax on gold from last week.

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