Press briefing of Cabinet Decision taken on 2023-12-11 (Subject to Confirmation at the next Meeting)

Amendments to the Value Added Tax Act, No.14 of 2002

- Approval of the Cabinet has been granted at the meeting held on 2023‑10‑30 to amend the Value Added Tax Act, No.14 of 2002, making provisions to reduce the Value Added Tax registration threshold, the total value of the supplies that tax can be charged per year from Rs.80 million to Rs.60 million and to increase the VAT rate from 15% to 18%, with effect from 2024‑01‑01. The Legal Draftsman has drafted the amending Bill having incorporated relevant amendments and the clearance of the Attorney General has been received for the same. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to publish the said amending Bill in the Government Gazette and thereafter, present the same in Parliament for approval, was approved by the Cabinet.