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Sunday Dec 22, 2024
Thursday, 24 January 2019 03:00 - - {{hitsCtrl.values.hits}}
The Cabinet this week approved an Amendment to the Value Added Tax Act, to enable the Minister to determine and prescribe by regulation the basis for the imposition of VAT on certain goods, the Government announced yesterday.
The proposal presented by Finance Minister Mangala Samaraweera amends the Value Added Tax (VAT) Act “enabling to re-introduce the tax exemptions imposed on importation of aircrafts and accessories, sawn timber and fabrics and locally manufactured rice bran oil,” the Office of Cabinet of Ministers announced.
Further the amendment enables the Minister of Finance “to determine and prescribe by regulation the basis for the imposition of VAT on certain goods”.
The VAT exemption which was earlier applicable on certain goods and services was removed under the Value Added Tax (Amendment) Act, No. 25 of 2018. However, considering the requests made by the relevant stakeholders in these fields, a proposal was made to reintroduce the exemptions for aircrafts and accessories, sawn timber and fabrics, and locally manufactured rice bran oil.
Cabinet also green-lit a proposal by Samaraweera to present Gazette Notifications published under the Revenue Protection Act, No 19 of 1962, revising the import duty to Parliament for approval.
Samaraweera is set to present the Gazette Notifications No. 2079/32, 2092/8 and 2097/36 issued for introducing new H.S. code and duty, enabling local manufacturers to receive concessions in levying import duty, and revising the import duty on petrol for the adjustment of the fuel price in the country relative to the decrease in fuel price in the international market, in Parliament for approval, the Statement from the Cabinet Office said.
