Cabinet meets next Tuesday to decide essential prices

The Cabinet of Ministers will meet next Tuesday (July 12) to decide on the prices of essential goods, and Value Added Tax (VAT) will not be added to certain items, said the Minister of Industry and Commerce Rishad Bathiudeen in Parliament yesterday.  

“I must highlight the fact that though the VAT component is applied to certain commodities, no VAT component is applied for essential food items such as White Rice, Sugar, Dhal, Big Onion, Potato, Red Onion, Milk Powder, Wheat Flour, Dried chillies, Green Gram, Chick Peas, Canned fish, Sprats, Chicken, Pharmaceuticals. 

“Especially, in Sathosa outlets, we are selling VAT-free consumer essential food items as mentioned above. It must be noted that, items which VAT are not imposed, the price should be less. But when a price of Thai sprats which is identified as good quality, one Kilo is at Rs. 530 in Sathosa outlets, it varied from Rs. 700 to 850 in general market. When it comes to remote areas price goes up to Rs. 900 due to the intervention of the middle men. 

“But I must emphasize here that no VAT is imposed on essential items. Therefore, the present pricing formula which is implemented by the Consumer Affairs Authority must be re-published and proper monitoring activity should be established district-wise to monitor and raid. Therefore, my ministry will take immediate action to re-gazzete the Maximum Retail price (MRP) of the essential items and publish the maximum prices by electronic and print media to the public and strengthen the market raiding mechanism. 

The Cabinet of Ministers will meet next Tuesday July 12 to decide on the prices of essential goods, re-gazetted. Accordingly, hereinafter, twice a week prices will be telecast through print media and electronic media. 
“If maximum retail prices are not maintained in the market, the aggrieved consumer can lodge a complaint to the Consumer Affairs Authority which we have established in each and every district. And also special hot number that is ‘1977’ has been introduced to lodge the complaints of the consumers. As announced at the Budget Speech, and also decided by the Cabinet meeting held  this week and also the special Cost of Living Committee chaired by the Prime Minister,