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Tax on chillie and onion imports

by Uditha Kumarasinghe

The Government will shortly impose Rs.30, Rs.6 and Rs.5 taxes per Kilo of imported dry chillies, big onions and red onions respectively, Agriculture and Livestock Minister S. B. Dissanayake said.

The decision was taken to safeguard a large number of farmers who face severe hardships due to the import of these items, Minister Dissanayake said.

The Minister said the Government had already imposed Rs.20 and Rs.9 taxes per kilo of imported potatoes and rice. As a result, potato cultivation has already reached the profit making level.

The Government has already reached the position of providing a lasting solution to the problems of local farmers engaged in potato, chillies and onion cultivation through the imposition of these taxes, he said.

He said the farmers had to spend Rs. 70 to produce a kilo of dry chillies. At present, a kilo of dry chillies is being imported at a cost of Rs. 60 to 65. As a result the local chillie farmers have encountered severe difficulties in selling their produce.

Therefore, a decision has been taken to charge a Rs.30 import tax on each kilo of dry chillies. This would help keep the price of a kilo of dry chillies at Rs. 120 to turn the local chillie farmers into income generating individuals.

"The objective of the Ministry is to produce all the dry chillies required locally within three years. Then a kilo of dry chillies could be sold at Rs. 100," he said.

Meanwhile, the Rs. 6 tax imposed on a kilo of big onions would safeguard the local farmers and help increase the production of big onions locally. It will keep a Kilo of big onions above Rs.30. A program will also be launched to provide quality big onion seeds to the farmers, he said.

The Rs. 5 tax imposed on a kilo of red onions will also provide a stable price of Rs. 45 per each kilo of red onion in the local market, the Minister added.

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