Sri Lanka to Increase Value-Added Tax to Meet IMF Targets

• Sri Lanka’s cabinet of ministers has approved raising the value-added tax rate to 18% from 15%.
• The increase is to boost revenue and meet targets set under an IMF program.
• VAT exemptions on some goods will be removed in January.
• Power tariffs will be revised quarterly instead of every six months.
• A bill for a new Employment Act will be drafted.
• Salaries of state workers will need to be raised next year.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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