Press briefing of Cabinet Decision taken on 2017-06-20

Removal of the Simplified Value Added Tax System

- The Value Added Tax (Amendment) Bill drafted in accordance with the amendments announced in the Budget Proposal was earlier approved by the Cabinet. One of the proposals contained in the amendments taken in to consideration at that juncture was the removal of the simplified Value Added Tax Scheme as per the recommendation of the Cabinet Committee on Economic Management. Accordingly, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance and Mass Media, to publish the Value Added Tax (Amendment) Bill which was re-drafted incorporating the effective date of removal of the tax scheme as 1st of January 2018, providing a sufficient period of time to enable the exporters time to adopt the system, in the government gazette and subsequently, present it in Parliament, was approved by the Cabinet.