Surtax on wheat flour will affect bakery products: AIBOA

The prices of all bakery products will soar if the government increased the tax on wheat flour, the All Island Bakery Owners' Association (AIBOA) said.

Speaking to Daily Mirror, AIBOA President N.K. Jayawardana said Agriculture Minister Mahinda Amaraweera had told a recent media briefing that if there were a surplus of paddy production, it was essential to impose a tax on wheat flour to protect local farmers.

“There is no such surplus in the country. About 60 per cent of people consume food made of wheat flour. Everything cannot be made out of rice flour. If there were an excess of stocks, there is no need of rice importation. The first thing the government should do is stopping rice imports. This government and the previous regime imported large stocks of rice. New varieties of rice were imported. However, if the government decides to increase the tax on wheat flour, there will be a definite price hike in all bakery items,” he said. (Chaturanga Samarawickrama)