COLOMBO (NewsRadio); Milk powder importers say there is no requirement to increase retail prices of powdered milk at present, despite the increase in Ports and Airport Development Levy with effect from yesterday.
The Milk Powder Importers’ Association said importers are in possession of considerable stocks at present due to the reduction in demand in recent months and therefore a price increase in not required.
However, the Association is of the view, the prices in the global market are increasing and it will lead to an increase in the local market around in December.
It has pointed that if the taxes are reduced, the prices of powdered milk will reduced considerably.
According to the importers, an imported kilogram sugar is levied 25 cents while a Rs. 45 tax is imposed on a kilogram of imported wheat flour.
Meanwhile, the tax on a kilogram of imported milk powder is Rs. 650. The Milk Powder Importers’ Association has noted that if the tax is removed, a kilogram of imported powdered milk can be sold for around Rs. 600 to Rs. 620.
Minister of Trade Nalin Fernando said the Ports and Airport Development Levy imposed on powdered milk has been increased by 10 per cent per kilogram with effect from yesterday.
The Trade Minister said the prices of powdered milk in the local market will not increase despite the announcement.