PM Wickremesinghe’s proposed 15% VAT increase to take effect from May

PM Wickremesinghe’s proposed 15% VAT increase to take effect from May

PM Wickremesinghe’s proposed 15% VAT increase to take effect from May

Written by Staff Writer

15 Apr, 2016 | 11:08 pm

The new 15% Value Added Tax scheme, proposed by Prime Minister Ranil Wickremesinghe in Parliament, will take effect from May 2, as announced by the Minister of Finance.

The increase will see the VAT rate rise from being between 8% and 12.5% to 15%

The new VAT rates will have an effect on the following:

01. Supply of telecommunication services

02. Import or supply of telecom equipment or machinery, high tech equipment including copper cables for telecom industry

03. The issue of licenses to local telecom operators by TRC

04. Supply of healthcare services

05. Supply of goods or services to any specified projects other than housing projects

*The Nation Building Tax will remain at 2% for the above.

The Ministry of Finance also notes that the Share Transaction Levy shall be re-imposed with effect from April 1, at the rate of 0.3% from every buyer and seller on the turnover of every share trading transaction, which is conducted through the stock exchange.

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