No price change

Chaminda PERERA

*Essential commodities

*Govt to fix prices on certain items

Trade Marketing Development, Cooperatives and Consumer Services Minister Bandula Gunawardena denying media reports, said yesterday that the imposition of new tax regime on essential commodities has made no impact on the prices.

Addressing the media in Colombo, the Minster said the Government imposed a single tax to avoid essential commodities imported by wholesalers being double taxed and this measure has not increased the prices of essential food items in the market.

According to the Minister, the rate of increase in essential food prices has been brought to single digit after five years by the Government. The rate of increase in food prices was reduced from 23.8 percent to 05.03 percent by March 2009.

“The wholesale price of essential commodities remain unchanged though retail prices of certain food items have slightly changed after the adverse media campaign launched by certain quarters with vested interests,” he said.

The Minister warned traders that the Government will declare fixed prices for essential items through a Special Gazette Notification in concurrence with the Consumer Affairs Authority (CAA), if they continue selling essential food items at higher rate.

The Minister said the CAA would conduct islandwide raids on errant traders who sell essential food items at a higher rate during the festive season. He said the CAA had conducted over 3,000 raids last year and the culprits were brought to book. “No one is allowed to increase the prices of essential commodities in an ad hoc manner. The Government has established a company through which essential food items are imported when prices of such items are soaring and out of control in the market.

Minister Gunawardena said certain elements are engaged in a futile attempt to stir the people in the South, when terrorism is on the verge of being defeated in the North.

“These elements are engaged in a dirty game to incite the public when the Government has focused on the elimination of terrorism which ravaged the country’s development for decades,” he said.

He said these elements launched a massive campaign citing that a rice shortage is imminent during the New Year season. “The Government ensures the public that there would be no shortage of essential food items in the country,” he said.

“The prices of Dhal, Kekulu rice and coconut have come down by 21, 31 and 60 percent during this New Year season as against their prices during the corresponding period last year,” he said.

Pettah Wholesalers’ Association members said they have not increased the prices of essential food items. They said the new taxes will not make any adverse impact of commodity prices as their prices have drastically dropped in the global market.

The tax imposed on green gram, dried chillies, white sugar, potatoes and big onions remained unchanged while the tax on sprats and gram imports has been increased only by Rs 5.