Bakery products sales decline due to ingredient taxation

18 March 2024 12:05 pm Views - 780

Colombo, March 18 (Daily Mirro) - Due to the imposition of taxes on ingredients used for bakery products, the sale of bakery items such as bread has decreased, chairman of the National Movement for Consumer Rights Protection, Ranjith Vithanage said.

He told the Daily Mirror that a tax of Rs. 50 has been imposed on imported wheat flour, egg prices have increased and a Rs. 6,000 tax has been imposed on a kilo of margarine.

Therefore, since  the prices of bakery items have increased, the sale of bread has decreased by 40 percent, and the sale of other bakery products has come down by 25 percent. Also, an 18 percent tax has been imposed on bakery items except bread.

Under this situation, 10 percent of the bakeries have closed, said Vithanage and added that bakery owners did not reduce the prices of bakery items, even though the electricity charges were reduced by 21.9 percent.