- Sri Lanka proposed lowering the VAT registration threshold from Rs. 60 million to Rs. 36 million to widen the tax base to more SMEs and small traders.
- The proposal was strongly opposed by business groups and opposition parties over compliance burdens, digital record-keeping capacity, and possible job losses.
- After the backlash, the NPP government dropped the threshold reduction plan.
- Other planned VAT changes include raising VAT on financial services from 18% to 20.5% and taxing digital services from non-resident companies at 18%.
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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