Concerns Raised Over Timing of VAT Hike by Tax Experts

• Tax experts express concerns about the timing of the VAT hike
• They argue that better planning and a gradual roll-out are needed
• Traders may use the VAT increase for profiteering
• There is a risk of major tax evasion
• Non-VAT registered suppliers may be left out
• Experts agree that removing VAT exemptions is necessary, but the timing is wrong
• Rushed implementation of tax policies has had negative outcomes in the past
• Experts emphasize the need for a well-defined policy that doesn’t favor one segment over another
• The government has announced an increase in VAT from 15% to 18% from January 1, 2024.

Source: dailymirror.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.

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