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Lifting of VAT :No benefits as yet
By N. Dilshath Banu
Despite the Government’s approval to exempt LP Gas and milk powder products from VAT, consumers will not benefit immediately. “Consumers will not be immediately benefited. We have to get the official documents from the Government and take the proper steps in order to implement the decision” a Milco official said.

A Lanka Milk Foods spokesperson no action can be taken to reduce milk food prices unless the Government sent the official documents regarding the VAT exemption.

A Laugfs Lanka Gas official said “We are waiting for the formal circular to take a decision. If the VAT is removed, then we can sell gas at a lower price and our sales may go up. But we have around 1,500 metric tonnes ex-stock which includes VAT”.Shell Gas spokesperson Renuka Jeya Raj said Shell Gas could consider reducing prices as soon as the Government gazetted the VAT reduction. Both Laugfs Lanka Gas and Shell Gas refused to comment on the extent of the price reduction.

The Cabinet had decided to exempt the 15% VAT on LP Gas and 5% per cent VAT on milk products by approving Finance Minister Sarath Amunugama’s proposal. The moves to reduce the prices of essential items were taken ahead of a possible election.

Liquor prices up
Liquor and beer prices went up by Rs 5-10 yesterday. A bottle of Extra Special Arrack distributed by Distilleries Lanka has been increased from Rs. 308 to Rs. 315, Coconut Arrack from 348 to Rs. 355, VSOA Rs. 410 to 415 and and Sri Lanka Arrack from Rs. 525 to 530.

Though the increase of a bottle ranged from Rs. 5 to 10 some restaurants, clubs and hotels have increased the price of 100 ml dram by about Rs. 5.

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