The Cabinet of Ministers has granted its consent to remove the Social Security Tax on the purchase of paddy, production of rice and marketing, Cabinet Spokesman Mass Media Media Minister Dr Bandula Gunawardana said.
He was speaking at the weekly Cabinet media briefing held yesterday at the Government Information Department.
The 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.
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 to Rs. 7.00 has to be spent per 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 if a concession can be granted to minimize the said cost. Considering those facts, the Cabinet of Ministers granted approval to the proposal tabled by the 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 a price more than Rs. 100 per kilogram of Naadu rice, sustaining the maximum price of rice existing within the market at present.