Value Added Tax (VAT) [ Amendments to VAT Act No 14 of 2002]
(i)The present single rate will be revised to 3 bands.
0%, standard rate of 8% and higher rate of 12.5%.
– 0% for export of goods and provision of services for payment in foreign currency outside Sri Lanka
– Services sector – 12.5%
– Manufacturing or import of goods – 8% ( with the limitation of input tax )
(ii) The present exemptions on the Import or supply of telecom equipment or machinery, high-tech equipment including copper cables for telecom industry will be removed.
(iii) The wholesale and retail trade (other than by a manufacturer or importer) will be excluded from VAT