News
Amended VAT Bill on Tuesday
View(s):Finance Minister Ravi Karunanayake will present the Value Added Tax (Amendment) Bill to Parliament on Tuesday.
This is the second time the Bill is being presented to the House. The Supreme Court ruled in early August that the previous Bill presented by the Minister to the House did not signify Cabinet approval, as is the constitutional requirement and hence could not be proceeded with.
The new Bill, approved by the Cabinet on September 13, also includes several amendments to the Bill previously presented to the House. In terms of the new bill, VAT will be charged at 15 percent while the threshold of registration for VAT has been reduced from Rs. 3.75 million a quarter or Rs. 15 million a year to Rs. 3 million a quarter or Rs. 12 million a year.
The imposition of VAT applies among others to wholesale and retail trade where the threshold is more than Rs. 50 million a year or Rs. 12.5 million a quarter. The new rate will also be imposed on private health services other than diagnostic tests, dialysis, and OPD services excluding medical consultation, telecommunication services, tobacco products and powdered milk which contains added sugar or other sweetening matter.
(CK)