Ceremic ware importers complain of over-protection of local industry
The construction industry is part and parcel of the country’s economy and today it is internationally accepted that the cost of construction industry in Sri Lanka is one of the highest in the region. This could be one reason plus the very high cost of electricity that is distancing investors from the country.
At a media briefing by the Tiles and Sanitary Ware Importers Association (TSIA) on Thursday at the JAIC Hilton Hotel, Colombo, it was indicated that on the import of tiles and sanitary ware the government imposes taxes and duty to the tune of 110 per cent which could also contribute to the high cost of construction industry, as tiles and sanitary ware have now become essential in the construction of buildings.
Kamil Hussain, President, TSIA told the briefing that all these imposition of high taxes and other levies are merely to protect only three local manufacturers of these items and this protection is far too high in excess which hurts the end user, the consumer who builds houses in addition to contributing to the high cost of construction.
He said that import of these items is a Rs. 12 billion industry and half this amount – Rs. 5 billion – goes as taxes to the government.
He said that for a small country like Sri Lanka this manufacturing industry is not suited as it creates an enormous impact on the environment as it burns the clay and very high temperature of energy has to be used. Therefore it has to be strictly regulated which would affect the environment and also in turn would affect the tourism industry.
He said that even large countries like China and India who are the largest manufacturers of these items have realised the tremendous environmental impact that this industry create and are now regularising and monitoring in a bid to save the environment.
Further, he pointed out that though it is identified as local industry, the essential raw material are imported and also it has been found that these local manufacturers too are importing these finished items.
The main purpose of educating the public through this media briefing, he said that is to dispel the myth that they are importing substandard items and dumping them in Sri Lanka, but said that they are importing very high quality items that are checked and tested by the Sri Lanka Standards Institute (SLSI).
He said that in addition to the protection offered with high taxing of imports, the local manufacturers are further protected through government tenders where they get an addition 20 per cent over and above the importers’ quoted figure.
Despite all these he indicated that the local manufacturers are doing heavy lobbying to have more protection in a bid to eliminate the importers. He also stressed that these three local manufacturers are making very heavy profits to become a monopoly which is not good for the industry, the country, the economy and to the end user the consumer.
Erwin Bulathsinhala, Secretary General, TSIA and D. Vigneswaran, Immediate Past President, TSIA also spoke.