• Min. of Trade acknowledges that importers who already hold stocks may make some profit
• Notes that same is unavoidable as there are always imported stocks in SL

The Ministry of Trade, Commerce, and Food Security has refuted allegations that the Government’s decision to increase import taxes on big onions and potatoes was intended to benefit importers.

Farmers’ groups, including the National Agrarian Unity (NAU) organisation, earlier claimed that the timing of the tax hike appeared to favour importers, as large consignments of both commodities had already entered the country.

When queried by The Daily Morning regarding the allegations, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana said that the decision was in line with the Government’s long-standing practice of imposing or increasing taxes on imports of certain commodities such as big onions and potatoes during local harvesting seasons to protect local farmers. 

“When taxes are increased, the price of imported commodities such as onions and potatoes naturally goes up. Importers who already hold stocks may make some profit, but that is unavoidable. This decision is not taken to benefit them. If we avoided raising taxes simply because imports are already in the market, we would never be able to do so. There are always imported stocks in the country, so that argument does not hold,” he said.

NAU President Anuradha Thennakoon claimed recently that although the Government increased import taxes on big onions and potatoes targeting the harvesting period to support local farmers, importers have already imported big onions and potatoes in large quantities. In this context, he alleged that the Government’s move seems to be counterproductive.