November 27, 2019 / 11:16 AM / 4 months ago

Sri Lanka's new government will almost halve VAT: Cabinet spokesman

COLOMBO (Reuters) - Sri Lanka’s new government has decided to reduce value-added tax (VAT) to 8% from 15% with effect from Dec. 1, Cabinet Spokesman Bandula Gunawardana said on Wednesday.

Gunawardana said the new cabinet, which for the first time on Wednesday, had also decided to abolish some taxes including the 2% nation-building tax imposed to finance development after the long civil war ended, and an economic service charge.

“The economy has collapsed under the previous government. The interest rates have sky-rocketed. So the new government has decided to abolish some taxes and also to reduce VAT from Dec. 1 to boost ... economic activities,” Gunawardana told reporters announcing the cabinet decisions.

Reporting by Ranga Sirilal and Shihar Aneez; Editing by Catherine Evans

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