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Increase in Special Commodity Levy: Price hike in some essentials?

29 May 2020

o Prices of dhal, tinned fish, sugar, chickpeas, etc. to increase o Increase in levy to safeguard local producers: Govt. by Maheesha Mudugamuwa With the increase of the Special Commodity Levy (SCL), the Essential Food Commodities Importers and Traders Association (EFCITA) warned that the prices of several essentials would also be increased. EFCITA President G. Rajendran told the media that the price of a kilogramme of sugar could be increased by Rs. 18, tinned fish by Rs. 50, and dhal and chickpeas by Rs. 3 each. However, the Government in its Covid-19 economic revival plan, imposed an SCL on agricultural commodities including palm oil, dhal, potatoes, red onions, chilli, tinned fish, yoghurt, and sugar to support a guaranteed price, as recommended by the Ministry of Agriculture and Plantation Industries as part of the tax framework last week. According to the new interim guidelines, the SCL on sugar and sugar substitutes, milk powder other than formula for infants, and tinned fish will be maintained at a high level in order to encourage local production. Speaking to The Morning, Government Spokesman Minister Keheliya Rambukwella noted that the taxes had been increased in order to protect local farmers. “Local harvests are also coming to market and during that time, the prices of imported items need to match with local (prices), otherwise the consumers tend to purchase the items with the lowest cost. By implementing this mechanism, the Government’s target is to protect local farmers,” he added.


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