08/11/2017 (The Island.lk) - The government reduced import duties on several essential commodities from midnight yesterday, a day before the announcement of the state budget for 2018. 'It will be an eco--friendly budget considering several relief measures in it for the public. It will be presented to parliament in a positive manner, Finance Minister Mangala Samaraweera said.

"This tax reduction will cost the treasury about Rs1.5 billion a month but the government will make up for the lost revenue with adjustments elsewhere,: Samaraweera said at a media conference at the Finance Ministry yesterday.

'The budget is aimed at giving relief to consumers hit by recurring droughts and floods in recent months, the minister said.

The import tax on potatoes will be slashed to Rs1 per kilo from Rs. 40, big onions to Rs. 1 from Rs. 40, dhal (full) to Rs. 1 from Rs. 10, processed dhal to Rs. 3 from Rs. 15, dry fish to Rs. 52 from Rs. 102, and sprats to Rs. 1 from Rs. 11 a kilo, the minister announced.

"Import taxes on edible oils will also be reduced, Samaraweera said.

The tax on unrefined palm oil and other edible oils will be reduced to Rs. 95 from Rs. 110, palm oil to Rs100 from Rs. 115, refined palm oil to Rs110 from Rs. 135, refined other vegetable oils to Rs. 105 from Rs130, unrefined palm kernel oil to Rs105 from Rs. 130, refined palm kernel oil to Rs. 110 from Rs. 145 and coconut oil to Rs. 105 from Rs130.