Cabinet clears to draft Value Added Act revision

Thursday, 6 June 2024 00:02 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved to direct the Legal Draftsman to draft the Bill to revise the Value Added Tax Act No. 14 of 2002 including amendments recognised as per the recommendations furnished by the temporary VAT committee appointed.

This includes the revisions acknowledged in accordance with the recommendations made by the temporary VAT committee, which was appointed in accordance with the directives of the joint committee chaired by the Government accounting committee.

This committee included the State Finance Committee, the Committee on Ways and Methods, the Sector Supervision Committee on National Economy and Physical Planning, the sector supervision committee on redressing the economic crisis, and the committee on ways and methods to implement tax restorations on Value Added Tax introduced by the Value Added Tax (Amended) Act No. 32 2023.

Additionally, the committee on ways and methods was formed to avoid the unanticipated consequences of eliminating tax reliefs from the Value Added Tax Act, as well as other tax revisions identified periodically based on decisions made by the Cabinet of Ministers.

The proposal to this effect submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister was approved by the Cabinet of Ministers.