Press briefing of Cabinet Decision taken on 2022-01-03

Draft Bills for amending the Special Goods and Services Tax Bill and the Value Added Tax Act, No. 14 of 2002

- It has been proposed through the Budgets 2021 and 2022 to impose online-managed single Special Goods and Services Tax in place of multiple taxes and levies imposed under several legal statutes to improve the efficiency of tax collection on liquor, cigarette, telecommunication, betting and gaming and vehicles. It has also been proposed by the Budget 2022 to increase Value Added Tax (VAT) charged on financial services and to exempt medical equipment, accessories and chemicals etc. donated to the Government Hospitals and the Ministry of Health to address any pandemic or public health conditions from the Value Added Tax. The clearances of the Attorney General have been received for the Special Goods and Services Tax Bill and the Value Added Tax (Amendment) Bill prepared by the Legal Draftsman. Accordingly, the proposal made by the Minister of Finance to publish the said draft Bills in the Government Gazette and to submit the same thereafter in Parliament, was approved by the Cabinet.