- Sri Lanka removed the zero-rated VAT on fabric imports effective April 1, 2026.
- An 18% VAT now applies to both imported and locally sold fabric.
- Fabric imported before April 1 and already subject to social security contributions (CESS) is exempt from VAT.
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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