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
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