GOVT. CUTS TAX ON SUGAR CONTENT IN FIZZY DRINKS

The government has cut the tax on the sugar content in fizzy drinks being manufactured by local companies such as Elephant House, International Trade and Investment Promotion Minister Bandula Gunawardane said yesterday.

He told that the previous government increased tax on the sugar content and it led the local beverage manufacturing companies to the brink of collapse.

“It had an impact on the livelihood of some 500,000 people. These are the people involved in retail and wholesale trade activities of these drink items. Also, there are those cultivating fruits and ginger for the production of carbonated or fizzy drinks. They too were affected as a result of high taxes levied on their produce,” he said. “This matter was brought to the notice of President Maithripala Sirisena at that time. Afterwards, the President referred it to the National Economic Council headed by Prof. Lalith Samarakoon, who recommended the reduction of tax on these locally manufactured drink items. At that time, the President’s recommendation was disregarded. After I assumed office as the Investment Promotion Minister, I took this matter up. Prime Minister Mahinda Rajapaksa agreed to meet the representatives of these companies.”

The minister said the beverage would be taxed only if they contained more than six grams of sugar.