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Tax on gold imports has helped save valuable foreign exchange

Central Bank’s imposition of a 15 percent tax on gold imports really helped to prevent foreign exchange from going out of the country, Central Bank Governor Dr  Indrajit Coomaraswamy said.

” During the first two months of the year gold and vehicle imports went up drastically and therefore, we decided to impose a 15 percent tax on gold imports from April, which gave some relief  to the fiscal position of the economy, Coomaraswamy told the media at the monthly CB Monetary Policy Review meeting on Friday.

He said that during the first two months of the year US $ 2.1 million worth gold imports were reported but there were no substantial exports and this ‘prompted us to impose the 15 per cent tax in order to prevent any leakage of foreign currency.’He also said that the Samurdahi Bank would not be taken over by the Central Bank but CB will will help to improve its performance by helping to regulate it to strengthen its position.

“Therefore, a new committee will be appointed to look into that matter, which is currently reviewed by a management committee, which has been appointed under the Divi Naguma Act, the Governor said.,

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