Colombo, Nov 27 (BAN/ AD): In a view to provide relief to people Cabinet of Ministers, headed by President Gotabhaya Rajapaksa, has decided to reduce VAT and cancel several taxes in the existing tax system. The cabinet decisions were announced by Co-cabinet spokespersons Bandula Gunawardena and Ramesh Pathirana at a media briefing on Wednesday afternoon.
The following types of taxes have been eliminated:
1. The Cabinet has decided to reduce the Value Added Tax (VAT) from 15% to 8% and abolish the 2% Nation Building Tax (NBT).
2. The Nation Building Tax levied at Customs will be combined with the Ports and Airport Development Levy and the relevant ratio will be 10% to protect the economy.
3. Economic Service Charge
4. Debit Tax on Banking and Financial Institutions
5. Capital gains tax on the share market
6. VAT on Sovereign Property
7. Income Tax Payable
8. Withholding tax on interest income and other types of withholding tax
9. Credit Service Tax
10. The tax on telecommunication tariffs has been reduced by 25%.
With effect from 1st December 2019 It has been decided to reduce the VAT tax.