Sri Lanka

Sri Lanka 12.5% VAT 2020

May 27th, 2018

Sri Lanka plans to cut its Value Added Tax rate from to 12.5% from the current 15%. The plan was announced yesterday by the Finance Minister, Mangala Samaraweera. Sri Lanka agreed to raise its VAT rate from 11% to 15% in 2016.

Sri Lanka

Sri Lanka 15% VAT

November 1st, 2016

Sri Lanka VAT has been raised from 11% to 15% from today, 1 November 2016. To help cushion the effects on the less well off, a range of over 80 basic products and foodstuffs are to be zero-rated for VAT. The VAT increase was originally introduced in May, but was blocked in May by a constitutenial …

Sri Lanka

Sri Lanka VAT rise still in doubt

August 8th, 2016

Sri Lanka’s VAT rise in May 2016 from 11% to 15% remains suspended following a Supreme Court ruling. The political parties in government will revisit the rise this week in an attempt to reach agreement on the rise. Whilst the rise remains suspended, key infrastructure programs remain on hold and doubts remain in financial markets …

Sri Lanka

Sri Lanka 15% VAT May 2016

April 15th, 2016

Sri Lanka has named 2 May as the latest date for a rise in its standard value added tax rate from 12% to 15%. The rise was last scheduled for 1 April. Part of the delay is due to the ongoing negotiations with the International Monetary Fund on new $1.5 billion debt financing. The VAT …

Sri Lanka

Sri Lanka drops VAT hike plan

April 8th, 2016

The Sri Lankan Inland Revenue Department has confirmed that it did not proceed with the plan to increase its VAT rate from 11% to 15 on 1 April 2016. The plan had been announced in March as part of attempts to secure new International Monetary Fund backing. The rise may only have been postponed, and …

Sri Lanka

Sri Lanka hikes VAT to 15%

March 9th, 2016

Sri Lanka announced this week that it intends to raise VAT from the current 11% to 15%. The rise will be subject to Parliament’s approval and not implementation date has been set.  The zero rating for telecoms, health and private education services will be withdrawn. There was a plan at the start of this year …

Sri Lanka

Sri Lanka 12.5% VAT 2016

December 2nd, 2015

The 2016 Sri Lankan budget includes a splitting of the current 11% VAT rate. All services will be subject to 12.5% VAT. Goods will only be subjects to 8% VAT. The current Luxury VAT rate of 12% will be removed. The VAT registration threshold is to be cut from LKR 15million to LKR 12million per …

Sri Lanka

Sri Lanka cuts VAT from 12% to 11% 2015

November 1st, 2014

Update January 2015 – this rise has not been passed. The Sri Lankan government has announced a reduction in VAT in 2015 from 12% to 11%. The proposed cut came as part of a range of political give aways ahead of next year’s elections. The VAT registration threshold will also be raised at the same …