Sri Lanka Plans to Reduce VAT Rates Over Next Two to Three Years
Sri Lankan President Anura Kumara Dissanayake says the government plans to reduce Value Added Tax (VAT) rates over the next two to three years to ease the financial burden on the public.
Speaking at a ceremony at Temple Trees on Thursday (October 8), where appointment letters were presented to 1,540 newly recruited Grama Niladhari officers, the President said the government aims to provide tax relief while managing rising public expenditure.
He also called for taxes on essential educational materials to be removed, arguing that children should not have to pay additional taxes when purchasing books.
However, the President acknowledged that tax reductions would require careful financial planning, particularly as the government implements public sector salary increases.
He said the three-stage increase in basic salaries for public sector employees is expected to add Rs. 330 billion to government expenditure by 2027.
The government must consider these commitments when preparing the next national Budget, scheduled to be presented on November 12, he added.
President Dissanayake also noted that public sector salaries are funded through taxes collected from citizens. He said the government must therefore balance improving public employees’ incomes with reducing the tax burden on the wider population.
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Source : Newswire
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