‘Bakery Owners compelled to increase bread prices’ | Daily News


 

‘Bakery Owners compelled to increase bread prices’

Bakery owners would be compelled to increase the price of bread within the next two months, unless the government were to introduce relief measures for bakery owners affected by recent tax hikes, the All Ceylon Bakery Owners’ Association had warned.

Excessive taxes levied on imported bakery ingredients had inconvenienced small-scale bakery owners with the prospect of driving them out of business, All Ceylon Bakery Owners’ Association President N. K. Jayawardene said.

Addressing a press conference held at Ragama, he said the tax hikes made by the government would only inconvenience small bakery owners, especially those in the rural sector, bringing job insecurities to thousands of workers under their employ. Super bakeries run by expatriates selling buns and fish buns at exorbitant prices such as Rs. 150 each, would not be affected by these ad hoc tax increases.

Jayawardena said the tax levied on a kilogram of butter was Rs. 215, but bakeries use palm oil instead, adding that a litre of palm oil was taxed Rs. 120, while the tax on butter was Rs. 600 per kilogram.

He said a kilogram of butter was currently Rs. 2,000, while a two-percent tax was levied on bread. All other products except bread had been levied a two-percent Modified Business Tax (MBT) and a 15-percent Value-added Tax (VAT).

A tax of Rs. 5 was levied on fish buns priced at Rs. 35 each. Short eats such as bread buns and Chinese rolls were common food in great demand among consumers. Unless the government implemented some relief measure for bakery owners, they would be compelled to increase the price of bread within the next two months, he said, adding that the escalating price of fuel and gas had adversely affected bakery owners as well.

The government had decreased only the price of individual domestic gas cylinders, and not the bulk of cylinders used by businessmen. 

 


Visit Kapruka.com Sri Lanka's Largest online shop. Over 125,000 unique categories such as Fresh Flowers, Cakes, Food, Jewllery, Childrens Toys and other Sri Lankan e-commerce categories. Low delivery cost to most cities here and free delivery in Colombo.

Add new comment