Prime Minister amends tax ....

Prime Minister amends tax ....

VAT ... 15%

Prime Minister Ranil Wickremasingha who made a special statement in parliament today has subjected certain changes once more in some taxes proposed at the last budget.

He mentioned that steps would be taken to increase VAT Tax upto 15% but that no change would be effected in the case of the tax relating to National Upliftment which remains at a 2% value. However

he also announced that essential items would be exempted from the new amendment. He added that these tax amendments are proposed to the parliament after taking into consideration the changes in the global economy and also in order to fill the gap in the budget. He further stated that bringing the VAT tax which was at two values being brought to one value is beneficial for the prevalent economic situation.

Prime Minister Ranil Wickremasingha who said that the tax would once again be enforced based on capital earnings stated that the tax would be increased from 15% to 17.5. Facilities of tax concessions allowed in relation to telecommunication, fields relating to private education and health too would be removed. He explained that for the purpose of getting over the loan-trap in which the country has got cornered and the present crisis which the world economy faces, these decisions are being taken. This statement was released to parliament by the Premier as an announcement of the Ministry.