Consumers spared effects of global recession

CHAMINDA Perera

The Government made every possible effort to provide relief to the consumers even in the midst of the financial recession that has affected almost all countries in the world, said Media Minister Lakshman Yapa Abeywardena.

He said the Government incurred a loss of Rs. 10 billion by exempting tax on 13 essential food commodities which resulted in the price reduction of essential food commodities such as dhal and milk powder.

Addressing the press, the Minister said tax on milk powder was reduced from Rs. 96 to Rs. 05 while the tax on dhal was deducted from Rs. 36 to Rs. 06. "The consumers immensely benefited by the reduction of tax on certain essential food items, he said.

He said consumers can now get a cylinder of Laugfs for Rs. 1,069 which was earlier Rs. 1800. "We did not curtail the subsidies enjoyed by the people and the country had adequate stocks of rice for eight months," he said. "The JVP and the UNP opposed the proposed tax reduction on essential commodities when this was presented to Parliament, he said.

The Minister said the country would have plunged into a financial crisis, if "Regaining Sri Lanka" had been implemented by the UNF Government. The Government led by President Mahinda Rajapaksa has placed confidence in the enormous potential of Sri Lankans and this has helped solve a number of financial crisis.