There is a rumour that the tax reduction targeted a particular company.
The lost revenue in the first year alone stands at Rs. 13,000 million.
Furthermore, the 1.3 million metric ton import per year rose by a further 400,000 mt in 2016.
In that year, a Rs. 17,000 million tax concession had been granted to import 1.7 million mt of wheat flour.
That sum is more than the total annual allocation for Samurdhi beneficiaries.
The company in question has to spend Rs. 38 per kilo of wheat seeds, inclusive of taxes and other expenses, but rice mill owners have to spend twice that amount to buy paddy and produce a kilo or rice, reports say.
This situation had encouraged the use of wheat flour, it is alleged.