Sri Lankan gov’t announces sweeping tax concessions

COLOMBO, 28 Nov 2019 [Fik/News Sources]: The new Sri Lankan government on Wednesday announced sweeping tax concessions in an effort to help reduce the cost of living incurred by the public. 

At a news briefing held in Colombo, Cabinet spokesman Bandula Gunawardena announced the slashing of the Value Added Tax (VAT) to 8% from the existing 15% with effect from December 1.

Among the other tax bonanzas announced by the government was the abolishing of the 2% Nation Building Tax (NBT) on domestic goods and services. The government has also abolished the Pay As You Earn (PAYE) Tax, Withholding Tax and the Capital Gains Tax on the Stock Market.

Gunawardena said that the government in its maiden cabinet meeting focused on how to provide relief to the public who has been suffering due to high cost of living under the previous coalition government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.

“The economy suffered under the previous government, and everything sky rocketed from interest rates to cost of living. So, as the new government, our responsibility was to make several concessions to provide relief to the public,” he said.