Sugar prices would have been Rs. 155 if not for tax reduction: State Minister

By Ajith Siriwardana and Yohan Perera  

While admitting the fact that a certain Company had earned an unreasonable income through the tax reduction on sugar, Co-operative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said yesterday a kilo of sugar could have gone up to Rs. 155 by now if the tax was not reduced.  The Minister said the tax on sugar was reduced as a relief to the people and refuted allegations of the Opposition that the Government had incurred a loss of Rs. 10 billion in tax revenue.  

He told Parliament that it was true that sugar prices have not come down to the controlled price and said the market price was decided by the supply and demand and pointed out that prices on certain goods cannot be controlled by rules and regulations.  

“Prices on certain goods such as gas, fuel and cigarettes can be controlled but prices on certain goods are decided by the supply and demand of the goods,” he said.  

“A metric ton of sugar is US$ 425 today. If the Rs. 50 tax was there, the kilo of sugar would have been Rs. 155 today,” he said.