Former Deputy Leader of the United National Party and MP Ravi Karunanayake has said that the sharp rise in gold prices in Sri Lanka is mainly due to heavy taxation.
Speaking to the media, the MP noted that the price of a pound of gold in the local market has climbed to nearly Rs. 400,000. However, he stressed that this does not reflect the actual global gold price.
He pointed out that the domestic price has surged largely because of high tax rates imposed on gold, adding that when the total tax burden—including VAT—reaches around 47 percent, price increases in the local market become unavoidable.
The MP said authorities must urgently review tax policies if they are serious about easing the burden on consumers and stabilising prices.
