Tridge summary
Starting August 15, 2020, Sri Lanka increased the special commodity levy para-tariff tax on potatoes from 50 rupees to 55 rupees per kilogram. This tax, which has been in place to protect potato farmers and promote them as a non-competitive export, is also applied to onions. The policy was introduced in the early 1980s to protect farmers during economic reforms, but it has been criticized for contributing to currency devaluation and high inflation rates.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The tax is charged as a special commodity levy para-tariff. From August 15, the tax would go up to 55 rupees a kilogram from an earlier 50 rupees a kilogram. Sri Lanka's potato farmers have been given protection for years and are promoted as an export non-competitive product who are able to charge higher than market prices from the public with the help of the tax. Onion farmers are also given protection. Potato and large onion cultivation was ironically promoted during the early 1980s as the country re-opened the economy without reforming the central bank and monetary instability worsened, triggering steep currency falls and inflation levels of ...
Source: Argenpapa
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