As soon as Vijitha reveals VAT mania, Ranil’s trade minister withdraws

As soon as NPP Member of Parliament Vijitha Herath revealed that a new VAT of 18% is to be levied on rice flour, which is a local product that is used as a substitute for wheat flour, which is imported to Sri Lanka annually at the expense of a large amount of foreign exchange the Minister of Trade Nalin Fernando stood up and announced that VAT would be not be imposed.
Participating in the budget committee debate today (01), MP Vijitha Herath presented facts about the new VAT that will be imposed. He said that due to this taxation, a kilo of rice flour, currently around 300 rupees in the market, will increase to 354 rupees. He severely criticized the move to impose a tax on rice flour, which is a local product and a substitute for wheat flour, stating that foreign exchange spent to import wheat flour could be reduced. He said such taxing would discourage production in an environment where local production should be encouraged.
He revealed that the import of rice, eggs and fish from abroad has been taken as a government policy and that despite the country’s vast sea area, recently, a ship of sailfish and ballu fish was brought from China. He warned that while the fishing industry in the country was collapsing and many employed in the industry were losing jobs due to the unsustainable cost of fuel and other expenses, the imposition of unprecedented VAT on rice flour would also collapse the industry.