VAT: CAA warns against arbitrary price increases

1 January 2024 10:30 pm - 12 - {{hitsCtrl.values.hits}}

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Colombo, Jan. 1 (Daily Mirror) - Amidst the recent increase in the Value Added Tax (VAT), effective as of yesterday, the Consumer Affairs Authority (CAA) has clarified that the elevated VAT rates will only apply to goods and items manufactured and released to the market from January 1 onward.

It has been emphasized that the price adjustments based on VAT for items released to the market prior to 2024 will not be applicable, an official who wished to remain anonymous said.

The Authority said that they are analysing the market and would take action against the traders who arbitrarily increased the prices.

The consumer items should be released to the market on January 1 with the printed VAT including prices.

"The CAA said that traders lack the authority to unilaterally raise prices on consumer items at their discretion. Any such actions will result in legal consequences," he said.

"The CAA asserts that traders lack the authority to arbitrarily raise prices on consumer items. Violations will result in legal action being taken against them,"

"The CAA official noted that certain consumer items are subject to an 18 per cent VAT, while others, having already incurred a 15 per cent VAT, would now be applicable for only a three per cent VAT."

"In addition to the VAT imposition on January 1, prices for mobile phones, bus fare, three-wheeler fare, school van fees, milk tea, plain tea, and lunch packets were raised," the CAA official said.

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Comments - 12

Rip Winkle Monday, 01 January 2024 10:40 PM

So you are basically gonna do squat for the consumer unless they go through the tedious process of exposing an errant trader, right? And even then there are no guarantees the wrongs will be righted, right? Friggin government misfits.

Kandiah Balendran Monday, 01 January 2024 11:09 PM

CAA officials are so corrupt that they don't take action against big players.

Sivalingam Monday, 01 January 2024 11:10 PM

Cargills not putting price on sugar packets.

SLEx Monday, 01 January 2024 11:11 PM

This is good. A lot of businessmen are looking to exploit the citizens by this VAT increase. Please also make it mandatory for any business to have at least 1 digital payment platform available at all times while providing a small discount for using those methods rather than cash transactions and to report any businesses that fail to adhere to this.

Sam Silva Tuesday, 02 January 2024 03:08 AM

All they have to do is change the manufacturing date which our crooks are very fluent. When government has so many paths to increase their revenue without effecting the majority of people they just to the opposite.

Ram Tuesday, 02 January 2024 03:53 AM

CAA, Stop issuing statements, catch and prosecute those traders who violates the VAT law and show results

Tax Guru Tuesday, 02 January 2024 05:27 AM

How can this be. A trader who has purchased his goods prior to Jan 01 will have an input credit of 15pct. Now he will have to charge 18pct and pay the difference to IRD. Prices would automatically go up unless he's magnanimous to forego his profit margin. This situation will not arise for those Traders who are not registered for VAT and they would benefit by taking advantage of the increased rates.

Dee Tuesday, 02 January 2024 05:31 AM

The elite in this country own and use 3 wheeler. Because it only does 3-5 km/ liter (the reason to increase per km rate by 20/-) the engines of a 3 wheeler must be more powerful than that of a Range Rover Velar.

Terrence K Tuesday, 02 January 2024 08:25 AM

The Consumer affairs authority is always sleeping and only want media mileage. My personal experience was on 31st December 2023 the only reputed bakery in the Minuwangoda town had jacked up the prices of all short eats and when questioned the response was an order from their management. How can these bakeries jack up prices on the eve of a VAT increase when the gazette specifically says that it should be implemented from 1st January 2024. All these organisations are fleecing the public and the Consumer Affairs Authority is turning a blind eye.

CAA cannot do anything about mobile phone price rises Tuesday, 02 January 2024 09:36 AM

Until government itself imports Smartphones, the mobile phone mafia is controlling the prices. Just like the egg business/farmer mafia power was ended by imports the mobile phone mafia must be ended by similar action.

Joshua Wednesday, 03 January 2024 02:27 AM

Empty talk by another inefficient bunch of public officials.

Sambo Wednesday, 03 January 2024 09:24 AM

You think the traders are afraid of your warnings. They have already increased the prices as they want. Can you please explain to the public as to why have you not informed of the hike of cigarettes in the media or news paper. How can accept this increase set by the agencies.

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VAT: CAA warns against arbitrary price increases

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