Pradeep Kumara, Director General of the Trade and Investment Policy Department of the Ministry of Finance, has resigned from his post, refusing to implement an order received from the Secretary of the Ministry of Finance to increase taxes on potatoes and onions, contrary to the policy of imposing taxes on imported goods, Finance Ministry sources said.
It is normal for the Finance Minister to impose taxes on imported potatoes and onions during the harvest season. However, the relevant law states that cabinet approval must be obtained to impose such taxes.
However, it is reported that the Secretary of the Ministry of Finance has ordered the Director General to impose taxes without cabinet approval this time.
The Director General of the Department of Trade and Investment Policy has informed the Secretary of the Ministry that the gazette imposing the tax cannot be issued, saying that the order is against the law. However, he has resigned from his post, stating that he cannot fulfill the illegal duties in the face of repeated pressure.
Meanwhile, customs sources state that importers had imported about 27,000 metric tons of onions a few days before the imposition of this tax.
It is reported that this quantity exceeds the monthly onion requirement of the country, and that the onions imported without paying the new tax are being sold at a higher price with the tax.
Wholesale market sources state that onion importers are making a huge profit of over Rs. 100 crore from this.