- Cabinet approves President Ranil Wickremesinghe’s resolution for VAT rate increase
- New 18% VAT rate set to take effect from January 1, 2024; to be applied to previously exempted goods and services
- IMF has withheld the second tranche due to Sri Lanka’s failure to meet revenue targets
- Tax revenue increased by 51% in the first nine months of 2023, yet falls short of IMF targets
- Sri Lanka has one of the lowest tax-to-GDP ratios globally, estimated at 7.3% in 2022
- However, uncertainty surrounds the ability of new taxes and increased rates to aid Sri Lanka’s economic recovery
- People already struggling with declining real income may resist higher tax rates
Source: www.dailymirror.lk
