Tea bun to cost Rs 100?

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The price of a tea bun could increase to Rs100 if the Value Added Tax (VAT) is not removed from bakery products.

This was revealed by the Chairman of the All Ceylon Bakery Owners’ Association, N.K.Jayawardana.

He said, VAT was applied to only 1 per cent of the bakery owners who earned more than Rs 300,000. But now according to the new VAT increment, 75 per cent of bakery owners have been included in the category as they earn more than Rs 100,000 per month.

He lamented if the Government does not take remedial measures, bakery owners will fall from the frying pan to the fire.

He said prices of all bakery products will be increased except the price of bread.Jayawardana also said 50 per cent of production has been reduced due to the current situation of the country plus more than 2,000 bakeries have closed.

Therefore, they have made a written submission to the Prime Minister yesterday (7) requesting that VAT be exempted from bakery products, he said.

By Kanchana Kolagolla