Cabinet approves more exemptions to VAT regulations

Thursday, 24 January 2019 03:00 - - {{hitsCtrl.values.hits}}

Exemptions reintroduced for aircrafts and accessories, sawn timber and fabrics, and locally manufactured rice bran oil
Minister to be given powers to determine and prescribe basis for the imposition of tax rates on selected goods
Gazette on revising the import duty to be presented in Parliament

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.

Rupee edges down on importer, state bank dollar demand

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.