Levy on imports will not affect consumers

Commenting on the impact of the recently imposed special commodity levy, the Finance Ministry today said the tax imposition on imported potatoes and onions will not affect the consumers but rather will be a measure to safeguard both consumers and local farmers.

“This is to safeguard the local farmer whose produce will be in higher demand as a result of this. The government could stand to lose as a result of reduced imports, but this is a necessary measure to protect the competitiveness of the domestic market,” Ministry’s Director Information and Public Relation M.G. Jayatissa told Daily Mirror.

Addressing concerns of the public with regard to the bearing of this levy he said that the consumer will not be affected by this measure as the price in the local market will not be altered, as this is a measure to encourage the consumption of local produce.

Affirming this point the Dambulla Traders Union President U.B. Ekanayake said  there can be no loss to the government through this measure and it stands to be a healthy improvement to the domestic market.

“There can be no loss tax wise. There will be a reduction in the quantity of imports, but with such a large increment in the duty there can be no loss to the government.”

“What importers used to do was to import in bulk at relatively low tax rates, which was detrimental to the local farmer and this will be avoided now. There are no large duties on local produce so it will not affect the consumer either. This is therefore a good measure where the interests of the farmer and the consumer are concerned” Mr. Ekanayake said. (Jehan Gunasekara)