VAT rate to remain at 11%
April 1, 2016 07:41 pm
The Department of Inland Revenue says that the applicable Value Added Tax (VAT) rate will remain at 11% until further notice.
Tax revisions which were scheduled to come into effect from today (April 01) will not be implemented until further notice, Commissioner General of Inland Revenue Kalyani Dahanayake said.
“Inland Revenue Department wishes to clarify that VAT rate, scope of the liability and provided exemption should be continued in accordance with the prevailing Act No. 14 of 2002 and amendments thereto until further notice.”
Accordingly, applicable VAT rate is 11% until further notice, a statement said.
Amendments to Value Added Tax (VAT), Nation Building Tax (NBT) and Land taxes were proposed in the 2016 budget.
In March, Prime Minister Ranil Wickremesinghe in Parliament announced that VAT will be hiked to 15 percent from 11 percent and said the government will impose a capital gains tax.
