VAT to be increased to 15% from May 2

15 April 2016 12:54 pm

The Value Added Tax (VAT) is to be increased to 15% with effect from May 02, 2016, the Finance Ministry announced.


Accordingly, VAT will also be imposed on supply of telecommunication services, import or supply of telecom equipment or machinery, high tech equipment including copper cables for telecom industry and supply of healthcare services.


“Wholesale and retail trade (other than by a manufacturer or importer) shall be liable for VAT and the tax shall be charged only on liable supplies. The restriction on exempt supplies (deemed VAT) shall be removed. Threshold for the VAT liability of wholesale and retail trade shall be reduced to Rs.3 million per quarter or Rs.12 million per annum.,” it stated.