Rs. 30 more for your packet of lunch

[Future123Active Member]

The living standard of poor and middle class people will further deteriorate due to higher indirect taxes.

The total increase in indirect taxes is 3.5% (NBT from 2 to 4 and VAT from 11 to 12.5 percent). However, the companies involved in processed food will perform better due to inflationary situation. The companies might increase prices more than the indirect taxes and due to over all inflationary situation Eg: KFP, CCS, BFL and many.

http://www.sundaytimes.lk/160110/news/rs-30-more-for-your-packet-of-lunch-178418.html


Rs. 30 more for your packet of lunch
By Chrishanthi Christopher
Tax increase passed on to customers
View(s):

Food outlets have increased prices of packets of lunch, pastries and other bakery products – passing on the extra taxes to unsuspecting consumers and thereby sending living costs higher. In line with the 2016 Budget proposals, the Government from January 1 doubled the Nation Building Tax (NBT) from 2% to 4% and increased other taxes also.

From this week, the price of a packet of rice was increased by about Rs. 30 in most takeaway outlets while most pastries and confectionary products were increased by Rs. 5. Bakery Owners’ Association, President N.K. Jayawardena said they were passing on the NBT increase to the customers. He said there were no controlled prices for cooked and most bakery items and therefore they could fix their own prices. He said even the price of a loaf of bread might be increased.

Mr. Jayawardena said they had talks with Finance Minister Ravi Karunanyake on this issue and he has promised some relief. “Till this relief comes, the bakers cannot give relief to the customers.”

[smallvilleTop contributor]

talks with Finance Minister Ravi Karunanyake on this issue and he has promised some relief.

Hmmm... this reminds me "Playing music to deaf-elephants!!!"

RK is an arrogant character.. Created much damage so that ppl wil hate the Govt.

The truth is, he tried to correct many wrong doings in previous eras one go which is not the correct method imo.. Its tru that no nation has survived giving public the benefits given in SL. Most countries tax 30-50% of Salary and SL par below. So this mutt brought in mechanisms to cut more by giving concessions up to 200K monthly salary bracket. RK has to understand ppl expected more from this Govt (may be too much) like cars for everyone and many others... And getting living costs increased is not in that list at all.. We cant complain for the seasonal facts that increase commodity prices. But by February, these food prices has to settle. If not then that's gonna be a problem.

Now that many ppl will get PAYE cut off - u can use the saving to pay for the increased VAT+NBT know? Very smart eh?

[Future123Active Member]

Now that many ppl will get PAYE cut off - u can use the saving to pay for the increased VAT+NBT know? Very smart eh?

As per the 2016 budget proposal, PAYE tax will be paid by an individual who earns a monthly income of over Rs. 200,000/=. Earlier I think it was Rs. 750,000/= per year. But the increase in food prices and lunch parcels would affect the poor and lower middle class who earn very low income. Eg: if a person earns 40,000 per month he would have not paid PAYE earlier or now but as a result of increase in indirect taxes his consumption would be affected.

Now the price of a tea in a saiva kade is 45/=, string hopper 9/= each, masala dosai 170/=.

It's a horrific thing to increase the taxes on essential food items like wheat flour. This government always criticized the indirect taxes but surprisingly they have increased the indirect taxes which would affect poor families. The effects of this will be felt very soon and the poor and lower middle class who expected a better living from this yahapalanaya clang would suffer.