Public Finance Committee approves amendments to VAT Act

The Committee on Public Finance approved the Bill to amend the Value Added Tax Act No. 14 of 2002 which will be taken up for debate in Parliament today.

The Bill provides for an increase in the VAT on the provision of financial services from 15% to 18% with effect from 1 January. In addition, this amendment will provide for the exemption of VAT only on medical equipment, machinery and pharmaceutical donations made to Government hospitals and the Ministry of Health in the event of any epidemic or public emergency.

Members of the Committee said a proper economic analysis should be done on any reduction or increase in the tax collection process in the country.

The Committee on Public Finance also approved the Agreement between the Government and the Government of the Republic of Turkey for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income.

Committee Chairman MP Anura Priyadarshana Yapa, State Ministers Nalaka Godahewa, Kanchana Wijesekera, MP Dilan Perera, Ranjith Bandara, Nalin Fernando, Harsha de Silva, Suren Raghavan Mujibur Rahman, Isuru Dodangoda and a group of officials from the Ministry of Finance were present at this meeting.