Consumer Rights groups have warned that the government’s proposal to remove the special tax on coconut oil and palm oil could lead to increased mixing of low-quality oils in the market, posing health risks to consumers.
Speaking at a media briefing in Colombo, the National Movement for the Protection of Consumer Rights Chairman, Ranjith Withanage, said the proposed change could also trigger a rise in local coconut oil prices, particularly from April 1 onwards.
Withanage warned that the removal of 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, only coconut oil is 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 due to increased exports of coconuts by manufacturers focusing on foreign markets.
This, he said, could lead to shortages in the domestic market, forcing consumers to shift toward palm oil and other substitutes. (Newswire)