No permission to increase powdered milk - Finance Minister

Saturday, 5 November 2016 00:32 - - {{hitsCtrl.values.hits}}

Importers to meet finance ministry officials to discuss the mater

Finance Minister Ravi Karunanayake yesterday said that the price of powdered milk will not be increased despite being Value Added Tax (VAT) imposed after the recent changes to the Act, a statement issued by the Ministry said.

VAT was imposed on imported powdered milk with effect from 1 November under the new VAT Amendment Act. However, powdered milk importers are not allowed to increase prices without prior approval as authorities have imposed maximum prices for different varieties of powdered milk.

Importers of powdered milk have requested a meeting with the Finance Ministry to discuss the possibility of either increasing the prices or getting their product exempted from VAT.

The Finance Ministry stated that the Government will evaluate the situation and the complaints made by powdered milk importers to explore the possibility of granting alternative relief to importers. Until such a decision is made the prevailing controlled prices of powdered milk as determined by the Consumer Affairs Authority will remain unchanged, the Ministry statement said. The current maximum controlled price of a packet of 400 grams of powdered milk is Rs. 325 while a 1 kilogram packet of powdered milk should be sold at Rs. 810.

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