Header Ad

Sri Lanka doubles import tax on large onions

ECONOMYNEXT – Sri Lanka has doubled a tax on large onions to 20 rupees from 10 rupees a kilo ahead of a domestic harvest, the finance ministry said.

Sri Lanka’s agriculture is protected and prices are kept high artificially through import duties at the expense of the poor and the hungry.

Rice, potatoes, onions and maize are also taxed to keep prices above the rest of the world.

Famers of these products have political clout to block imports but their quality is not good enough for export unlike the produce of farmers of India and Pakistan.

Sri Lanka’s elected ruling class started to encourage the production of large onions and potatoes in Sri Lanka in the 1980s to ‘save foreign exchange’, a problem that comes from money printing. (EconomyNext/Sept22/2015)

Latest Comments

Your email address will not be published. Required fields are marked *