COPF approves VAT increase to 18%

Thursday, 7 December 2023 02:51 - - {{hitsCtrl.values.hits}}

Dr. Harsha de Silva

The Committee on Public Finance (COPF) has granted approval for the proposed increase in the Value Added Tax (VAT) to 18% pending necessary amendments, as announced by Committee Chairman Dr. Harsha de Silva in Parliament yesterday.

The Chairman emphasised that only a limited number of items will be exempt from VAT as the Government seeks to boost its tax revenue.

“However we have continuously highlighted that taxes must be fair. Therefore we have proposed to reconsider VAT exceptions for certain items such as infant food. VAT has even been imposed on these at a time there is an issue of malnutrition in the country,” he noted.

The MP also pointed out that VAT has been imposed on fertiliser and diesel as well as medical equipment. “We have asked the Government to reconsider and provide tax exemptions to these items,” he added.