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Tax Imposition Leads to Decrease in Bakery Product Sales

Ranjith Vithanage, Chairman of the National Movement for Consumer Rights Protection, disclosed that the imposition of taxes on ingredients utilized in bakery products has resulted in a decline in sales, particularly of bread.

In an interview with the Daily Mirror, Vithanage highlighted that a tax of Rs. 50 has been levied on imported wheat flour, while egg prices have surged, and a hefty Rs. 6,000 tax has been imposed on a kilo of margarine.

Consequently, with the increased prices of bakery items, the sale of bread has plummeted by 40 percent, while other bakery products have witnessed a 25 percent decrease in sales. Additionally, an 18 percent tax has been imposed on bakery items, excluding bread.

In light of this predicament, Vithanage noted that 10 percent of bakeries have shuttered. He further lamented that bakery owners have not adjusted prices despite a 21.9 percent reduction in electricity charges.

The imposition of taxes on bakery ingredients has adversely impacted both consumers and business owners, exacerbating the challenges faced by the bakery industry. Source –

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