In a recent statement to the press, Ranjith Vithanage, chairman of the National Movement for Consumer Rights Protection, highlighted a concerning trend in Sri Lanka's bakery industry.
Vithanage expressed alarm over the declining sales of bakery items, particularly bread, attributing it to the recent imposition of taxes on essential ingredients.
According to Vithanage, the introduction of taxes, including a Rs. 50 levy on imported wheat flour and a substantial increase in egg prices, has significantly impacted bakery operations. Additionally, a hefty Rs. 6,000 tax per kilogram has been placed on margarine, further exacerbating the financial strain on bakery owners.
As a direct consequence of these tax burdens, consumers are facing higher prices for bakery goods. Vithanage revealed that bakery item prices have surged, leading to a notable 40 percent decline in bread sales and a 25 percent reduction in the sale of other bakery products. Moreover, an 18 percent tax has been levied on all bakery items except bread, compounding the financial challenges faced by both consumers and bakery proprietors.
Amidst this economic turmoil, Vithanage disclosed that approximately 10 percent of local bakeries have been forced to shut down operations. Despite a recent reduction in electricity charges by 21.9 percent, bakery owners have been reluctant to adjust their prices downwards, aggravating the financial strain on consumers.
