The Confectionery Industry is faced with series of issues and the government is not addressing them, said Chairperson, Lanka Confectionery Manufacturers’ Association Shanaz Hakeem.
The industry has shown a year on year growth of 2.4% and account to over 100, 000 direct employments and has paid over Rs 50 billion as taxes to the government last year. In addition the industry has earned over US$ 100 million foreign exchange to the country.
The duty on raw materials is having a tremendous negative impact in the industry and the CESS too is a major concern. In addition high cost of energy too is another issue. “The government is planning to have an FTA as well as ETCA pact with China and India and before these are implemented the anti dumping bill must be implemented.”
She also pointed out that the packaging process and food labeling process of their produce too has double standers as imported confectionery items just need a sticker while local products have a different and more expensive procedure. Hakeem also said that locally produced TV and advertising materials are taxed in addition to their production costs making it an additional financial burden. “However foreign confectionery advertisements are aired free of charge on Cable TV and here again no level playing field is created,” she alleged.
She pointed out that this issue was brought up earlier and a tax on Cable TV airing advertisements were proposed at the last budget but they were yet to be implemented. She appealed from Prime Minister Ranil Wickramasinghe to implement these proposals and address some of the anomalies that were highlighted. (SS)
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