Mawbima Lanka Padanama condemns tax cut on wheat flour

Pic by Nisal Baduge

By Chaturanga Samarawickrama   

While condemning the removal of taxes on imported wheat flour, the Mawbima Lanka Padanama (MLP) yesterday said the government had put local farmers at risk by its decision.   
Speaking at a media conference MLP Convener Arunakantha Bandara said, the Government had misled the 75 percent farmers who voted for them.   

The government announced the removal of the tax on imported wheat flour and replaced it with the Special Commodity Levy (SCL) with effect from December 14. The Consolidated Tax of Rs 36 per kg of imported wheat flour has been replaced with the Special Commodity Levy (SCL) of Rs.8 per kg.   

“With the government’s decision, rice consumption in our country definitely will come down and all stakeholders in the production of rice will be adversely affected,” he said.   
“The government should also stop importing large quantities of wheat flour. Otherwise, there would be more stocks of flour in the country than rice stocks.” Mr Bandara said.   
“Therefore, the government should increase taxes on wheat grain and flour by bringing up its stock price to Rs.110 and increasing the price of a loaf of bread to Rs.80,” he said.   
“By increasing the taxes on wheat flour, that revenue could be assigned for the development of local farmers, especially paddy farmers,” he said.   

“Our President should take a decision to break the wheat flour monopoly to strengthen the local farmers,” he said.   

With the government’s decision, rice consumption in our country definitely will come down and all stakeholders in the production of rice will be adversely affected