ECONOMYNEXT – Sri Lanka is cutting protectionist taxes on canned fish, sugar and large (Bombay) onions and dhall (lentils) the President’s office said.
The tax cut will result in the price of a large can of tinned fish falling to 200 rupees, B-onions to 100 rupee and a kilo of sugar to 85 rupees, the President’s office said.
Sugar is now retailed at over 130 rupees a kilo.
Sri Lanka taxes canned fish and sugar to give high profits to import substitution mercantilists. Sugar is produced by expropriated state enterprises.
The tax cuts will give relief to the people amid a Covid-19 crisis, the President’s office said.
Earlier in 2020, Sri Lanka’s consumer affairs authority slammed price controls on both tinned fish and dhall and made them disappear from shop shelves. (Colombo/Oct14/2020)