Sri Lanka to Reduce VAT Registration Threshold and Increase VAT Rate

• Sri Lanka will reduce the VAT registration threshold from Rs.80 million to Rs.60 million per annum.
• The VAT rate will be raised from 15% to 18%.
• The Bill to amend the VAT Act has received clearance from the Attorney General.
• The draft bill will be published in the government gazette and presented to parliament for concurrence.
• The VAT (Amendment) Bill was passed in parliament with a majority of 45 votes.
• The increase in VAT is aimed at securing the second tranche of a $2.9 billion bailout from the IMF.
• The Ceylon Chamber of Commerce has expressed concerns about the impact of the VAT increase on consumption.

Source: adaderana.lk

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.