- Sri Lanka’s Cabinet has approved an increase in the value added tax (VAT) to 18% starting from January 1, 2024.
- The VAT will be imposed on certain goods and services that were previously exempt from the tax.
- The increase in VAT is part of the government’s efforts to enhance tax revenue and achieve loan sustainability.
- Despite an increase in tax revenue in the first nine months of 2023 compared to the previous year, the targets set by the International Monetary Fund have not been met.
- The new tax proposals aim to help achieve the tax revenue and primary balance targets agreed with the International Monetary Fund.
Source: newsfirst.lk
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.
