Sep 19, 2018

Sugar tax increased by Rs. 18.50

The government had increased the import tax on sugar by Rs. 18.50 effective from mid-night on Monday, said MP Bandula Gunawardena.

Accordingly, the current import tax on sugar has now risen to Rs. 49.50 per kilo, he said.

With the increase in import taxes on sugar, the current price per kilo of sugar at the wholesale market in Pettah has been increased from Rs. 90 to Rs. 110. It is reported that the sugar importers had stocked large consignments of sugar prior to the increase in price which would bring them additional profits after the price increment. Sugar, which was so far listed under the essential items category has now been removed from that list.

According to market sources, due to the increase in sugar, the price of many other items in the market would also be increased.

However, the Finance Ministry states that despite the increase in import tax on sugar by Rs. 18.50, there is no reason for the increase in sugar prices.

Since the VAT on sugar imposed so far has been reduced by 15% and the import cost being reduced by Rs. 20, there is no reason why the price of sugar should be increased, despite the import tax increase, the Finance Ministry noted.

The sugar production in India and Brazil has increased and the price of sugar has been reduced by these countries, but the local importers have not given that advantage to the consumer, said the Finance Ministry, adding that there is absolutely no necessity to increase the price per kilo of sugar which was sold at Rs. 90-95.

 

 

 

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