Private health services have been granted relief through the VAT amendments as outpatient treatment, diagnostic tests and dialysis will be free of VAT.

Joint Cabinet Spokesperson Minister Dr. Rajitha Senaratne said the gazette on the VAT amendments approved by cabinet will be published, and thereafter the Finance Minister will present it to Parliament.

According to the proposed amendments, the 15 percent VAT will remain unchanged.

As per the previous draft Bill, the threshold for the VAT liability of wholesale and retail trade has been changed. Accordingly, VAT will be imposed on wholesale and retail trade with an annual turnover of over Rs.50 million.

A 15 percent VAT will also be imposed on powdered milk with added sugar/sweeteners, telecommunications and tobacco products.

VAT will also be imposed on air tickets.

It has also been proposed to increase the tax on garments supplied to the domestic market by companies registered with the Board of Investment by Rs.75  a unit.

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