Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 6 July 2016 00:06 - - {{hitsCtrl.values.hits}}
President Maithripala Sirisena on Monday promised that an uncomplicated decision would be taken on the VAT system following further talks with all stakeholders.
Speaking at a discussion over the VAT amendment with state representatives and representatives of business associations at the Presidential Secretariat, President Sirisena observed that business associations had called for a more simple VAT system claiming the current system was too complex.
President Sirisena said he planned to hold a series of discussions on the VAT amendment and Monday’s meeting was the first one. Prime Minister Ranil Wickremesinghe and Finance Minister Ravi Karunanayake also participated in the discussion.
While emphasising that the main focus should be the consumer when the VAT issue was considered, the President assured that a suitable solution would be reached considering the problems of the business folk as well, to implement a program which will benefit the public and also business associations, through proposals by those in the business community, economic specialists and State representatives.
The President also instructed that a representative of the traders’ associations participate at each meeting to be held on VAT together with the economic experts, ministers and public officials.
He said that further talks should be held on the issue with traders engaged in wholesale and retail businesses as well as delivery services.
Finance Minister Ravi Karunanayake speaking to the media following the discussions said that the discussions held on the subject of VAT with representatives of traders’ associations was approximately 95% successful.
He also said that it was also not the final discussion on VAT. “The Government invited traders engaged in wholesale and retail businesses as well as delivery services to these discussions,” the Finance Minister said.
The Government increased Value Added Tax (VAT) from 11% to 15% with effect from 2 May in order to bring in more revenue. As a result, the prices of a number of items and services rose and businesses and traders across the island staged protests against the move by closing their businesses and halting trading activities.
The Government has assured that the VAT increase will not be a burden to people. The Government has exempted essential services including water, electricity as well as medicines while removing the tax concessions on telecommunications, private education and private health.
