PM proposes to increase VAT to 15%

Prime Minister Ranil Wickremesinghe has proposed in parliament today that the Value Added Tax (VAT) should be increased to 15 per cent considering the current global economic situation and shortcomings in the methodology of collecting tax.

The Prime Minister making a special statement in parliament said that tax concessions granted on Telecommunication services, private education and health services would be removed.

He said VAT would not be imposed on Essential commodities and electricity while it would be imposed only on selected non essential commodities.

(Daily Mirror)