Consumer rights organizations have raised concerns over the government’s proposal to remove the special tax on coconut oil and palm oil, warning that it could lead to mixing of low-quality oils in the market and pose health risks to consumers.
Speaking at a media briefing in Colombo, Ranjith Withanage, Chairman of the National Movement for the Protection of Consumer Rights, said the proposed change could also trigger a rise in local coconut oil prices, particularly from April 1 onwards.
Withanage cautioned that removing the tax may result in a higher influx of palm oil and other less healthy alternatives into the market. He noted that, according to medical experts, coconut oil is the only oil considered safe for deep frying, while palm oil and similar oils may increase health risks.
He also expressed concern that local coconut oil supplies could shrink as manufacturers focus on exporting coconuts to foreign markets. This, he warned, could lead to shortages in the domestic market, forcing consumers to rely on palm oil and other substitutes.
