It has been proposed to increase the Value Added Tax (VAT) from 8% to 12% and the Telecommunication Tax from 11.25% to 15%.
The media unit of Prime Minister Ranil Wickremesinghe issued a statement yesterday (31st) regarding the tax increase.
It is stated that the revision of the VAT is planned to be implemented by issuing a gazette notification subject to the approval of Parliament, and the statement regarding the communication tax will be issued by the Telecommunications Regulatory Commission subject to the amendment of the Telecommunication Tax Act.
It is also proposed to reduce the tax block on taxable income from Rs. 3 million to Rs. 1.2 million and to impose a tax rate of 4% to 32% on each tax block.
In addition, several other procedures have been announced to be implemented from October 1, 2022, and April 1, 2023.
