The Government is losing revenue of Rs. 200 Mn a month, due to the removal of taxes imposed on imported milk powder, stated the Ministry of Finance, adding that the annual loss would be Rs. 2,400 Mn.
The tax of Rs. 40 per Kg of imported milk powder has been removed in a bid to reduce the acute milk powder shortage in the market.
Sri Lanka imports US$ 350 Mn worth of milk powder from New Zealand and Australia annually.