VAT consolidation temporary measure to boost revenue: Siyambalapitiya

• Says VAT hike in January will not affect electricity tariffs

State Minister of Finance Ranjith Siyambalapitiya said value-added tax (VAT) which will come into effect from January 2024, is only a short-term measure to boost Government revenue.

“VAT consolidation is a temporary measure taken in line with the IMF agreement to increase Government revenue,” he said addressing a meeting in Ruwanwella.

In October, the Government announced that the VAT rate will increase from 15 to 18% with effect from 1 January 2024.

He also said that the VAT increase will not affect several sectors, including electricity tariffs.

Siyambalapitiya said that upon broadening the tax base, the Government could consider relief for the public.