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.

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.