Sri Lanka has revised its food import tax structure, significantly increasing the tax on imported potatoes to approximately $184 per ton, while reducing the tax on onions from $122 to $31 per tonne, as outlined in a gazette notice. These changes to the special commodity levy are effective from the start of December until the end of the month. The country is known for imposing high food taxes, including a levy on rice amounting to $199 per ton. This taxation policy contributes to elevated food prices, particularly when assessing local income levels.
Additionally, the government has announced plans to import 70,000 metric tons of rice through two state agencies to lower the high prices of Nadu rice in the domestic market. Critics argue that such tax policies and import restrictions benefit local production at the expense of consumers, leading to inefficiencies in farming practices across Sri Lanka.
Source: economynext