Accordingly, the price of a sugar bun is likely to increase to Rs. 100, he said.
Therefore, he said that a letter had been forwarded to the Prime Minister requesting that bakery products be exempted from VAT.
He said that as VAT is paid for all raw materials used for the production of bakery items, it is unfair to impose the VAT again on bakery products and that it is a burden that is unbearable for the bakery owners.
Jayawardena also noted that due to the country’s economic crisis around 2000 bakeries have already closed down, adding that even bakery production has reduced by around 50%.