Anticipated VAT Relief by May Despite Increase in Tax Rate

• VAT relief could be expected by April-May
• Value Added Tax (VAT) increased to 18% from January 2024 onwards
• The increase in VAT is not necessary to be imposed forever
• VAT exemptions will be eliminated for most products except for health, education, and essential foods
• The VAT revision is expected to contribute an additional 2.07% to state revenue
• The increase in tax rates may lead to a 2.5% rise in inflation
• The Central Bank and Ministry of Finance express confidence in reducing inflation through a reduction in the electricity bill

Source: themorning.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.

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