Bread price to be Rs. 50 after tax removal: Bakery Owners

While thanking the government decision to remove the consolidated tax on imported wheat flour with effect from December 14, the All Ceylon Bakery Owner's Association (ACBOA) said that the price of a loaf of bread could be reduced by up to Rs.50 a loaf.

Speaking to the Daily Mirror today, ACBOA President N. K Jayawardene said the previous government never thought of this type of brave decision considering peoples' perspective.

"Wheat flour monopoly was maintained between two main importers. By removing the consolidated tax on wheat flour, all bakery products including the bread price will be reduced," he said.

He said that new wheat flour stocks would arrive in the country within the next two or three weeks and after that, the price reduction of bakery items would come to effect.

“The government might not have gained revenue from reducing wheat flour taxes, but taken a brave decision to surpass the wheat flour monopoly,” Mr Jayawardene added. (Chaturanga Samarawickrama)