The Cabinet of Ministers has approved a resolution regarding the Value-Added Tax (VAT) and the Simplified Value-Added Tax (SVAT). The resolution, proposed by President Wickremesinghe as the Minister of Finance, aims to remove most VAT exemptions while retaining those that benefit low-income families and key sectors like education, health, and agriculture. Additionally, the resolution seeks to revise provisions in the VAT Act to cancel the SVAT methodology from January 2024 and introduce a more formal repayment method for VAT. These reforms are in line with the funding facility provided by the International Monetary Fund (IMF) and can potentially increase tax income by 1.2% of GDP.
Source: adaderana.lk
Latest Posts in "Sri Lanka"
- Sri Lanka Postpones VAT on Non-Resident Digital Services Until April 2026
- Sri Lanka Postpones VAT on Electronic Platform Services Until April 2026
- Sri Lanka Postpones VAT on Digital Services by Non-Resident Providers Until April 2026
- Sri Lanka Introduces Risk-Based VAT Refund Scheme Effective October 2025
- Sri Lanka Delays 18% VAT on Non-Resident Electronic Services to April 2026
