Taxes removed during elections re-imposed

The government has re-imposed a food commodities tax, which was removed ahead of the Presidential and general elections.

The re-imposition of the tax is to result in an increase in prices of 11 food commodities including sprats, dhal, onions, salmon, potatoes, etc.

The taxes have been re-imposed through Gazette notification No. 1652/59 on May 7, 2010 

by President Mahinda Rajapaksa in his capacity as Finance Minister.

According to the Gazette notification, the taxes will be re-imposed from may 10, 2010 and be effective for he next three months.

  Following the latest Presidential directive, tax on a kilogram of sprats will be Rs. 30, a kilo of salmon and preserved fish Rs. 85, chillies between Rs. 20 and 25, Red and Bombay Onions Rs. 10, potatoes Rs. 10, dhal Rs. 1 to 2, garlic Rs. 30 and peas, chickpeas and green peas Rs. 15. 

Meanwhile, the government’s decision to impose a Rs. 3 tax on wheat flour on May 1 resulted in an increase in the prices of all wheat flour based food items.

The prices of Shell and Laugfs LP gas cylinders also increased by Rs. 219 and Rs. 323 respectively last week.