President Donald Trump is also raising taxes to favour some domestic businessmen such as steelmakers harming not only ordinary Americans but exporters who use steel for value added products.
The current administration had lowered some of the excessive taxes on sanitary ware.
“Domestic manufactures of sanitary ware is in danger from imported competition and there were discussions on the possibility of raising cess taxes to previous levels,” a statement from President Sirisena’s office said following a meeting of an economic policy committee.
The statement did not say the President had agreed to the tax.
High taxes on steel, tiles and sanitary ware had made housebuilding excessive for ordinary Sri Lankans.
Like the problem facing American exporters of steel based products, even the cost of hotels is higher in Sri Lanka than East Asia, creating problems for competitive businesses.
In Sri Lanka businessmen have colluded with government officials and politicians for years to exploit ordinary consumers who usually do not have a voice in policy making via Trump-style taxes.
Protectionism is a type of corporate greed where, businessmen block competition, getting together with rulers and make easy money making it more expensive especially for the less affluent to buy a particular good.
Protectionist business who get used to easy money become inefficient and cannot compete in the rest of the world, causing exports to fall. (Colombo/June14/2018)