Bakery owners allege the government’s sudden imposing of an import levy on wheat flour is intended to protect the monopoly of the two importers.
The Rs. 11 tax will safeguard Prima and Serendib companies, which supplies bakeries at Rs. 200 per kg, said president of their association M.K. Jayawardena.
Although the government claims an import tax of Rs. six per kg on whole wheat, the actual increase is Rs. three only.
Wheat flour is imported at Rs. 160 per kg, while total taxes amount to Rs. 46 per kg now, said Jayawardena.
Without the import levy, prices of bread and other products could have been reduced by Rs. 10 each, he said.