Up, up and away ... new taxes send prices sky-high

Consumers are set to face more increases in the prices of food, clothing, hardware items and toiletries.

Imported food items such as sprats, canned fish, chicken, beef and dairy products will become more expensive as new taxes are imposed on them.

Most other consumer products such as oils, coffee, tea, vinegar, bakery products and cut flowers will also be subjected to the increased Customs taxes, said Deputy Director of Customs, Policy Planning and Research, H. M. S. Premarathna.

Cement and paint prices are due to be increased in coming weeks.

“We were hoping that the recent Budget would provide us with relief but instead it has made it harder for people to live. Middle-income families such as mine are greatly affected by this,” said Chithrani Vitharana, 40, a mother of four from Moratuwa.

“All my children are still in school. My husband is the only breadwinner in the family. This budget made our lives even harder,” she added.

Retailers as well as consumers are affected by the new taxes.

The government extended its turnover tax on supermarkets earning more than Rs. 500 million per quarter to those earning Rs. 250 million rupees per quarter, compelling smaller supermarkets to pass on the burden on the consumers.

“We already have fewer customers these days, and when the price of food and other commodities are increased there will be even fewer. The government claims that it increased the prices of imported goods in order to pro- mote local products but we don’t have good products that meet the public's expectations,” said Janitha Bandara, manager of a shop in Maradana.

Anula de Silva, manager of another Maradana shop, said that even though there were emerging varieties of local products most consumers preferred imported goods because they were used to them.

“There is a section of the public that always asks for imported goods believing that they are of good quality. Others are simply used to a certain type of imported product,” she said, adding that for instance, even though Sri Lankan milk was of good quality many people did not like its taste.

Consumers complain that although the tax increases were made in the name of supporting Sri Lankan farmers, ordinary people were left vulnerable because local products were in short supply and were sold at high prices.

They claim most local products are sold at a similar price to imported goods, leaving open option to buy either sort.

V. Kalaimaran, 43, from Ja-Ela said most of the time local products were not found in the market as a result of scarcity.

“Highland is a local milk product but it is not in the market most of the time. Some people say shops are doing this to increase its price even more. All we are saying is, increase local production and give the goods to us for a lower price,” he said.Consumers said they want the government to first enhance local production and then increase the price of imported goods.

“We want to have a happy life and we want our children to live without being burdened by the cost of living. If not for the increased prices of essential commodities, especially the food, we wouldn’t be complaining because all we want is to live a decent life,” said Mrs Vitharana from Moratuwa.