VAT abolition: Some breathe sigh of relief, but milk powder....?

Pulse of the People by Ananda Kannangara

Tony Premasiri of Hanwella said that although the Government has decided to do away with the Value Added Tax (VAT) on ten essential commodity items from next month, to bring down the cost of living, I am quite apprehensive of the private sector traders falling in line.

"Unlike the State-controlled co-operative shops and Lak Sathosa outlets, no private sector trader will pass on the benefit on to consumers."

"Therefore, I suggest to the Trade Ministry to deploy flying squads to crack down on errant traders who try sell items at exorbitant prices,"

A private sector employee, Geetha Kanakaratne opined that the Government could easily reduce the prices, if President Mahinda Rajapaksa appoints a committee to probe into corruption and malpractices committed by some Ministers and MPs.

"By that move a tidy sum could be diverted towards planned price reduction systems".

She also accused certain Parliamentarians for robbing millions of which if checked, could, instead be used to grant subsidy on essential items,".

Fathimath Mufeed of Kollupitiya said, "I earnestly request the President to cut down the number of ministries, so that a colossal sum of money currently spent on them, could be made use of in this process,"

A private sector employee Dinuk Kanth of Nikaweratiya welcomed the Govt's decision, but was disappointed over the non inclusion of milk powder, especially infant milk powder, in that category.

"I request the Trade Minister Bandula Gunawardena to bring this down too for the sake of the future generation".

A public servant Dayawansa Caldera of Battaramulla said during his three months official visit to Canada last year, he had observed the Canadian Government seemed to have a close rapport with the milk powder manufacturers, in order to keep a control on the prices of milk powder.

"Why can not our Trade Ministry take over as agents for milk powder imports, so that the prices of milk powder could be kept under check," he asked.

Mahesh Rohitha of Ganemulla said " Although Minister Bandula Gunawardena talked a lot about the new price reduction scheme from next month, expecting the private sector to respond.

"Therefore I suggest to the Trade Ministry to set up Lak Sathosa outlets at main junctions to prevent private traders taking the monopoly". Shiranthi Mudunkotuwa of Avissawella welcomed the Government's move to abolish VAT but wondered as to why the authorities had conveniently forgotten the VAT on Milk powder?

"I urge the Government to slash the prices of milk powder as the current prices are intolerable."

A third year student of Sri Jayawardanapura University, Kamani de Rosairo thanked the Trade Ministry on its decision to abolish VAT on sugar, dhal, canned fish, sprats etc.

"Rather than removing VAT on gram, green gram and potatoes, the authorities must pay attention to wheat flour and rice, as they are the staple diet of people,".

Manager of a stockbrokers association, Neranjan Kumarasinghe said that Cost of living could be brought down easily, if the Government decides to take over the imports of rice, flour, sugar and milk powder,". A mother of three, Shivanthi Rasanayagam of Batticaloa said the prices of all items in Batticaloa have been spiralling to dizzy heights and wants the Government to distribute the items at reasonable price through outlets at various military camps. A member of a Colombo private traders association, Imithiyas Nazzar thanked the Government for abolishing the VAT on the ten essential food items, at a time when the country is facing a severe financial crisis, due to the prevailing situation in the North.

"Therefore I suggest to the Government not to abolish VAT on food items until the war situation ends."

Mother of four, Kumudulatha Seneviraja of Haldummulla said the Cost of Living had recorded a high due to the war and if the situation is brought under control, a colossal sum of money could be diverted towards reduction of essential food items.

A banker in the mercantile sector, Kevin Fernando said "There are many uncultivated lands in the country and therefore I suggest the Government to re-establish the Land Army concept (Govi Hamuda) to cultivate all lands,".

"This will also help to eliminate the unemployment problem and also reduce the high prices of essential food items,"

A mother of two, Nimali Karunathillaka of Nikawaratiya was bitter about the price increase of milk powder and the Government's inability to reduce them for the sake of small children.

School teacher, Somachandra Piyatillaka of Mawanella said the Government has not taken any steps to reduce the price of fish.

"Therefore I suggest to the Fisheries Department to activate mobile sales outlets to sell fish at affordable prices,".

A medical officer attached to a base hospital in Sabaragamuwa

Dr. Ashly Gunatillaka cited Andhrapradesh in India, as example where the state Government had commenced a massive agricultural farming program by recruiting unemployed youth and the result had immensely helped to bring down the prices of agricultural products while providing jobs to youth at the same time.

"There are unemployed youth in our country too, and therefore like in India, why can't the Agricultural Department start various self employment projects such as poultry, cattle farming by recruiting them as permanent employees.

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