Proposed 4% VAT Increase To Be Implemented From Tomorrow(02)

The 4% increase of the Value Added Tax (VAT) is due to be implemented with effect from tomorrow(02) according to Inland Revenue Department.

Accordingly the 11% VAT will be increased to 15% from tomorrow for many sectors the Department has stated,

The Electricity ,Public Health Sector and Medicinal Drugs are excluded  from the tax increase However Telecommunications,Water and Private Health Sectors  will be included for the tax increase it has been reported.

Although the Electricity has excluded from VAT ,the 2% Nation Building Tax will be added to the Electricity with effect from tomorrow.

The Prime Minister Ranil Wikramasinghe has stated that the proposed VAT increase will be implemented due as a solution for the current economic crisis prevailing in the country and will not allow this tax increase to become a burden to the common man.