Government raises tax on potatoes and canned fish

Wednesday, 19 September 2012 02:08 - - {{hitsCtrl.values.hits}}

Ministry says move to protect farmers but Opposition says hike predicted

The Finance Ministry yesterday stated that taxes have been increased on canned fish and imported potatoes in a bid to protect local farmers, but the Opposition charged that the previous tax reduction was merely an election ploy.

Releasing a statement, the Ministry noted that the tax of Rs. 30 per kg of imported potatoes has been increased up to Rs. 50 and tax of Rs. 50 per kg of imported canned fish up to Rs. 75.

“As the harvest of local potatoes of the Yala season 2012 is reaching the market from mid August, a special commodity levy charged on imported It was business as usual for Pettah traders selling potatoes after the Finance Ministry announced a tax increase – Pic by Upul Abayasekera potatoes has been increased with effect from 18 September 2012 in order to certify a reasonable price for the production of farmers who are engaged in cultivation of potatoes. The Ministry of Finance and Planning has decided to increase special commodity levy on imported canned fish effective from the same date,” the statement said.

However, United National Party (UNP) MP Dr. Harsha de Silva insisted that this was his prediction, made five days ago, coming true.

At a press conference held on 12 September Dr. de Silva opined that the Government would have no choice but to raise taxes if it wished to keep the 4% budget deficit for the first half from doubling by year-end. He insisted that since the end of elections the government was moving ahead with tax increases on essentials.

The Finance Ministry added that the Government has decided to continue the existing special commodity tax of Rs. 50 charged on export of big onions without any revision.

Higher import tax is imposed on chilli, black gram, green gram, peanut, sugar, and kurakkan produced locally, in order to certify a higher price for the production of local farmers, particularly during the harvesting period.

“The country has reached self-sufficiently in production of rice and maize and local farmers have been encouraged to provide above goods in order to meet 50% of local consumption requirements,” it pointed out.