Sri Lanka’s cabinet of ministers has approved a proposal to eliminate the simplified value-added tax (SVAT) methodology and remove several value-added tax (VAT) exemptions from next year. The decision was made based on an agreement with the International Monetary Fund (IMF) to introduce reforms and increase tax revenue by 1.2 percent of the country’s GDP. President Ranil Wickremesinghe proposed revoking most VAT exemptions but retaining those for education, health, agriculture, and measures benefiting the poor and vital state interests. The IMF approved a 48-month arrangement to support Sri Lanka’s economic policies and reforms with a fund of around $3 billion.
Source: news.cn
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