After Harsha’s punch Johnny backs down on sticker rule for small items

Wednesday, 9 July 2014 01:02 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama Our Lobby Correspondent Opposition Lawm-aker Dr. Harsha de Silva yesterday successfully prevented the Government from levying another tax on the unsuspecting consumers.

The proposed tax, which was scheduled to apply from 1 August, was to come in the form of a security sticker pasted on almost all consumer items spanning from shampoo sachets to electrical switches, thereby increasing prices by a minimum of Rs. 4. The controversial gazette notification authorised the deal to SICPA, a Swiss-based organisation with offices and factories in five continents manned by 3,000 staff of over 50 nationalities, capable of providing technologies and services and becoming a trust enabler for global trade. “SICPA prevents counterfeiting of legitimate products, illicit trade, smuggling of genuine products, and evasion of tax obligations. This is an organisation to apprehend tax evasion in other parts of the world, especially liquor and cigarettes,” said Dr. de Silva who suspects the Governments motive behind the sticker was to count the number of items produced, imported and sold, making it easy to control and tax. Talking about the lower end of the consumer market who are unable to buy shampoo in bottles but to rely on sachets sold for a few rupees, Dr. de Silva said: “According to the implementation guideline of SICPA, a two-inch long safety sticker is essential for all items including bottled water, soap, and

shampoo sachets. We found that each sticker will cost Rs. 2 and in the absence of an assembly line the sticker has to be pasted manually, which will add another Rs. 2 as labour charge and related cost. So, with the sticker, the price of the particular item will increase at least by Rs. 4. Annually, over 50 million sachet shampoo packets are sold in Sri Lanka.” Due to Dr. de Silva’s protest, Minister of Cooperatives and Internal Trade Johnston Fernando assured that the proposed sticker will not be introduced for small items and will prevent any additional price hike, and use it only as a quality control measure. “The rule will not apply for sachets and other small items. But we will start with bottled water. However, we will not allow price of products to be increased,” Minister Fernando added.