Attention drawn to proposed VAT at Cabinet Press Briefing

Attention drawn to proposed VAT at Cabinet Press Briefing

Attention drawn to proposed VAT at Cabinet Press Briefing

Written by Staff Writer

20 Apr, 2016 | 9:13 pm

Views were expressed on the proposed tax amendments at a Cabinet Press Briefing held on Wednesday,

Expressing views regarding the proposed tax amendments at the Cabinet Press briefing, State Minister of Finance Lakshman Yapa Abeywardene said that, as per the instructions of the President, this tax will not be levied on water, electricity and similar goods.

The minister also said that the VAT will not be imposed on any of the goods for which relief was granted through the Budget.

He also said:

Therefore, as much as we need to increase government revenue, we also need to strengthen the private sector in order to increase job opportunities. These are not terms dictated to us by the World Bank, IMF nor any other foreign institution. We hope to decrease the budget deficit from 5.9 to 5.4 this year. This tax will not be imposed on essential goods, but in fact on luxury goods. We have amended this in a manner which will directly affect luxury goods. This tax will directly affect the people through the telecommunications sector and two other services.”

Speaking further, he said that a fair burden will be placed upon the public but all other goods have been freed from this tax.

Meanwhile, Co-cabinet Spokesperson Min. Dr. Rajitha Senaratne noted ” -VAT is charged from private hospitals. Except for the tax imposed on the channeling service. There will not be an increase in channeling fees. This is because I have permitted the maximum charge in channeling fees, they cannot charge more than that. Therefore, no one in Sri Lanka can increase their prices on the basis that the VAT has increased.”

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