- Sri Lanka’s cabinet has approved a hike in Value Added Tax (VAT) from 15% to 18% starting from January 1, 2024.
- State tax revenue for the first nine months of 2023 has increased by 51% compared to the same period last year.
- However, the tax collection targets agreed with the International Monetary Fund have not been met.
- The new tax proposals will also include taxes on goods and services that are currently not subject to VAT.
- The increase in taxes is necessary to cover public sector salaries, welfare payments, and other recurrent expenses.
- The government is aware of the public’s struggles but has no choice but to increase taxes.
- Additional taxes are expected to be introduced in the upcoming budget presentation in mid-November.
Source: channelnewsasia.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
