The Government has pledged to ban canned fish imports to Sri Lanka, Sri Lanka Canned Fish Manufacturers Association President Shiran Fernando said.
This decision was arrived at after a meeting with Fisheries Minister Douglas Devananda on Thursday at the Fisheries Ministry.
He said that almost 19 million tins of canned fish were imported to the country from September to November hugely jeopardising the local canned fish and fisheries industry. Another 20-25 million tins of canned fish are due to enter the country in the next few months which will lead to the total breakdown of the local fisheries industry.
He said by giving a licence to import canned fish for a mere Rs. 200 Special Commodity Levy (SCL) per kilo a total non-level playing field has been created with local canned fish manufacturers having to pay 18% VAT.
This will increase a local tin of canned fish by Rs 500 and will take off the competitiveness of locally produced canned fish totally.
While welcoming the decision to ban canned fish imports, Fernando said that VAT should be imposed on all imported canned fish now in the country. This will also increase the revenue of the Government, he said.
Fernando said the Government must increase the SCL of an imported tin of canned fish from Rs. 200 to Rs. 500 immediately.
He also said the basis of charging tax on imported canned fish should be changed from drained weight to net weight. Currently it is charged on the drained weight and as a result it is unfair for local canned fish producers as the tin and label come into the country duty free.
He said that no directive has been issued by the Consumer Affairs Ministry or the Finance Ministry to allow supermarkets to sell local canned fish above the Maximum Retail Price (MRP).
As a result they refuse to charge the VAT from the end consumer and local manufacturers have to bear the VAT cost element as well.
