Facts Sri Lankans should know. 1 in 3 Sri Lankans are under the poverty line & half of Sri Lankan families find it hard to have 3 proper meals. But a staple food, rice (imported) is taxed around Rs 60 a kilo. But Parliamentarians and doctors have been able to import vehicles duty free for years. I can’t find words to describe this.
Import tariff on rice is an indirect and regressive tax on the poor as a poor family and a rich family consume roughly the same amount of rice. While a duty free car import permit for a parliamentarian or doctor is a subsidy for the rich as Parliamentarians (at least of the past parliaments) and doctors are considered well off compared to millions of Sri Lankans. This is like robbing from the poor and giving handouts to the rich.
Let’s be very clear, a subsidy is a hand out of govt money. Why were parliamentarians given tax free imports of vehicles while poor families have to pay taxes on imported rice (around Rs 60 per kg) which makes the rice price go up by around 30% price?
President Anura Kumara Dissanayake stating in September that he will altogether stop duty free vehicle permits for MPs is excellent. But at the same time, Sri Lanka has some of the highest food taxes in the world. Hope the new government can reduce the food taxes as more than anything else, it is essential that all Sri Lankans can have proper meals. Lack of proper meals affects young children which can have a permanent effect on their education and health for years to come.