brand logo

Social security levy to drive up food prices, unions warn

03 Oct 2022

By Buddhika Samaraweera   The All-Ceylon Bakery Owners’ Association (ACBOA) stated that due to the 2.5% social security levy imposed with effect from 1 October, the price of bakery products including bread will have to be increased. “According to the information we have received, the price of wheat flour is going to increase with the imposition of this tax. Therefore, the price of bakery products including bread has to be increased. However, it has not been decided by what amount the price will be increased, and we will decide on Monday (3),” ACBOA President N.K. Jayawardana said yesterday (2). Meanwhile, the All-Ceylon Canteen Owners’ Association (ACCOA) stated that it will not reduce the prices of food despite the latest reduction in petrol prices. Speaking to The Morning yesterday, ACCOA President Asela Sampath said that it is the cars, motorcycles, and three wheelers that benefit from the reduction of petrol prices. As such vehicles are not commonly used in food transportation-related activities, he said that the food prices can be reduced only if there is a reduction of diesel prices. “We, along with many other civil organisations, have been demanding the relevant authorities to prepare a programme to reduce the fuel prices, as they are making a huge profit by selling fuel at higher prices. If they do so, the entire economy will return to normal, as it is because of the fuel prices that the prices of many other commodities such as food have gone up. What we asked for is a reduction of diesel prices, but what they have given is a reduction of petrol prices,” he added. He also said that despite the Government reducing petrol prices, the social security tax imposed will cause another price hike in many commodities. Given the said tax and the fact that canteen owners do not benefit from the petrol price reduction, Sampath said, there is no possibility of reducing food prices. The Ceylon Petroleum Corporation (CPC) and the Lanka Indian Oil Corporation (LIOC) had reduced the prices of 92-Octane and 95-Octane petrol with effect from 1 October. Accordingly, the price of a litre of 92-Octane petrol, which was Rs. 450, was reduced by Rs. 40 to Rs. 410, while the price of a litre of 95-Octane petrol, which was Rs. 540, had been reduced by Rs. 30 to Rs. 510. The prices of other fuels including diesel and kerosene remain unchanged.


More News..