Reducing VAT to 15% by expanding VAT registration for businesses: Minister’s proposal

• Minister Bandula Gunawardena suggests reducing VAT to 15% if all businesses in Sri Lanka register for VAT
• He believes that expanding the tax base will reduce the burden on innocent people
• VAT is levied on added value, so primary goods like fruit floats are not subject to VAT
• Some politicians mislead people about VAT leading to a high cost of living
• VAT is a consumption tax that is imposed at each stage of the supply chain
• It creates a consistent and stable source of revenue for governments throughout the supply chain’s lifecycle.

Source: island.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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