Archives

Govt losing Rs. 800m per annum due to VAT concessions

by Jayantha Sri Nissanka

The Government is losing Rs.800 million per annum by giving tax concessions for essential items through the Value Added Tax, Minister of Rural Economy and Deputy Minister of Finance Bandula Gunawardane told the Daily News yesterday.

"We gave these concessions to ease the cost of living burden when the country was facing the worst ever financial crisis", he said.

The Government has removed tax on rice, rice flour, infant milk, liquid milk, wheat and wheat flour, coconut, vegetables, eggs, fish, fruits, spices, kerosene, medicine, text books, medical equipment.

Meanwhile, the Government will hold discussions with the Shell Gas company to see whether they can bring down prices.

The Company increased gas prices by Rs.14 in their latest price adjustment.

Minister of Commerce and Consumer Affairs Ravi Karunanayake told the Daily News that the Munda Gas operation can start in early September.

He believes that the ware house problem will be solved this week. Munda Gas will be sold at Rs. 350 in Colombo and Rs. 325 in the South.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager