President Wickremesinghe Announces VAT Reduction and Exemptions in Special Parliament Statement
March 06, Colombo (LNW): In a special statement delivered in parliament on Wednesday (March 06), President Ranil Wickremesinghe unveiled the government’s plans to reduce the Value-Added Tax (VAT) in the future. The President outlined that as part of this initiative, school exercise books, stationery items, medicines, and medical equipment are slated to be exempted from the VAT.
President Wickremesinghe, who arrived at the parliament complex to update the House on Sri Lanka’s economic recovery progress, acknowledged that imposing VAT was a challenging decision but emphasized that it significantly contributed to boosting state revenue to nearly 11% of the GDP.
During his address, the Head of State highlighted that the growth in state revenue provided assurance to the international community about Sri Lanka’s ability to settle outstanding debts. This, in turn, led to the appreciation of the rupee and a subsequent reduction in prices for imported goods, including fuel.
President Wickremesinghe expressed optimism that if the nation continues on this trajectory successfully, the economy will further stabilize by the end of the year. Additionally, he disclosed the government’s intentions to expand the tax net, citing the measures taken to widen the tax base. As a result, Sri Lanka has witnessed a rapid growth in taxpayer registration, with the total number of tax files surpassing 1 million by the end of 2023.
