President justifies imposition of 18% VAT on local IT and digital services, exempts export earnings

• President Ranil Wickremesinghe justifies VAT on local supply of IT and digital services
• Export of IT services earning foreign exchange will be tax-exempt
• Increased revenue from VAT will be used for research initiatives, including AI research
• President points out that India also taxes IT software supply services with 18% GST
• President assures IT sector of government support
• President announces establishment of Digital Transformation Agency, AI Centre, and Digital Technology and Innovation Council
• Plans to expand existing universities and establish new ones focused on technology and science
• Collaboration with foreign partners, including India, to become a global technology hub
• Plans for technological integration in agriculture and energy sectors
• Changes to investment landscape with the replacement of BoI and EDB by the Economic Commission

Source: ft.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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