Removal of five levies led to price slash - Trade Minister

Irangika Range

COLOMBO: The Government has removed five levies including VAT, PAL (Ports and Aviation Levy), SRL (Social Responsibilities Levy) Customs Surcharge and Cess Levy applied on essential commodities by passing the Special Commodity Levy Bill in Parliament on Thursday to provide greater relief to consumers.

Trade, Marketing Development , Co-operative and Consumer Affairs Minister Bandula Gunawardana told the media yesterday that only one import duty will be charged at the port hereafter, thus slashing the prices of essential commodities.

"It is questionable why Opposition parties voted against the bill," the Minister said. They created chaos in Parliament when it was being passed. This indicated their dislike for providing relief to the people.

"Though the Government has incurred a loss of Rs.9 billion by removing these taxes, it will further continue the price stability agreement which has stabilised the prices of 10 essential commodities including dhal, sugar, sprats, big onion, red onion, gram, green gram, broiler chicken, potatoes and dried chilies."

Under the new imposition of one import custom duty, Rs.3.80 for dhall, Rs.5 for gram, Rs.5 for green gram, Rs.10 for white sugar, Rs.12 for dried chilies, Rs.3 for red onion, Rs.3 for big onion will be charged per one kilo of each item.

The levy for one tin of canned fish is Rs.7.50.

"We have increased taxes during the potato and big onion harvest to protect the local farmers," He said.

He said prices of 10 essential commodities have been slashed in the market due to the removal of the taxes. Canned fish is now priced at Rs.90 while It was Rs.128 earlier.

One kilo of a broiler chicken was priced at Rs.280 in March and it is now sold at Rs.235. The one kilo white sugar is sold at Rs.48 now while it was priced at Rs.63.

A one kilo of dried chilies was priced at Rs 270 on March while its price is Rs.165 now. One kilo of green gram and gram was sold at respectively Rs.115 and Rs.120 at Sathosa branches presently.

To recover this Rs.9 billion, the Government has been compelled to impose small levies on mobile phones and super luxury vehicles.