VAT a New Year: Prices of essentials go up from today

• Long Distance Bus fares, school van fees, three-wheeler fares, food prices increase as VAT pushes up costs 

By Chaturanga Pradeep Samarawickrama   

The Inter-Provincial Private Bus Association (IPPBA), the All Island School Van Operators Association (AISVOA), the All-Island Three-Wheeler Drivers’ Union (AITWDU), and the Canteen Association announced late last week that they would need to raise their prices, citing the imposition of the new Value-Added Tax (VAT) at a rate of 18% from January 2024.

Meanwhile, telecom businesses also announced increases in their charges due to the imposiiton of VAT. 
IPPBA Secretary Anjana Priyanjith said after imposing the new VAT, the diesel price would increase by Rs. 50, and therefore the minimum bus fare should also be increased.  
However, he said that they hoped to increase the minimum bus fare around Rs. 35, while increasing the remaining rates 20 percent according to the percentage.   

The minimum bus fare is Rs. 30 as of March 31, 2023.   “If the diesel price affect the new VAT from today, the bus fare will also be increased from today whether we like it or not,” he said.   
Meanwhile, AISVOA Chairman Malsiri de Silva told the Daily Mirror that they were yet to make a decision. However, he indicated they too have no options left.   

“We know that increasing the school van fee is a huge burden to the parents, however in the current situation, we also cannot do anything to reduce the school van fare as well,” he said.  
Moreover, AITWDU President Lalith Dharmasekera told the Daily Mirror that there was a possibility of petrol prices increasing by more than Rs. 50 from January, and if that happened, the charges for the first kilometre would also increase according to the fuel price.   

“We did not take any measures to revise fares on previous occasions where the government had increased petrol prices. But this time, we cannot remain so. We have to increase the fares according to the price increases,” he said. 

The Canteen Owners Association also said that they had decide to increase the prices of foods they sold.   

Accordingly, a cup of milk tea by Rs.10, a cup of pain tea by Rs.5, short eat items by Rs. 10, rice and curry lunch half and full packet by Rs. 25, Fried Rice half and full by Rs.25, kottu rotti half and full by Rs.25 and Nasigurang packet by Rs.25. 

•  The Inter-Provincial Private Bus Association (IPPBA), the All Island School Van Operators Association (AISVOA), the All-Island Three-Wheeler Drivers’ Union (AITWDU), and the Canteen Association announced late last week that they would need to raise their prices, citing the imposition of the new Value-Added Tax (VAT) at a rate of 18% from January 2024