VAT concession for many items

November 18, 2024

Development - Provincial

VAT concession for many items

April 21, 2016

Electricity, water, medicine, locally produced vegetables, fruits and fresh milk have been exempted from the Value Added Tax (VAT), Finance State Minister Lakshman Yapa Abeyawardena said. Addressing the weekly Cabinet press briefing at the Government Information Department Auditorium yesterday, he said VAT will be imposed on private healthcare facilities and telecommunication services.

The State Minister said the recent increase in VAT will not affect the concessions granted through the budget.

The VAT percentage was 12 percent in 2014 and it went down to 11 percent from January 1, 2015. This percentage will be increased up to 15 percent from May 2, this year, Abeyawardena said.

The Supply Value for Registration for VAT was Rs. 12 million in 2014 and Rs. 15 million in 2015. This will be Rs. 12 million from May 2, this year. The supply value for imposing VAT for wholesale and retail trade was Rs. 500 million in 2013 and Rs. 250 million in 2014. This value was Rs. 100 million in 2015 and it will be Rs. 12 million for one year, he said.(CDN)