Budget: 30,000 more trade outlets to fall into VAT net- Champika Ranawaka

10 November 2025 10:32 am Views - {{hitsCtrl.values.hits}} 4 Bookmark

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Around 30 000 trade outlets such as grocery stores, textile shops and wayside hotels will be liable for VAT payments, and it will result in the rise cost of living as the burden will be transferred to consumers at the end, former Minister Patali Champika Ranawaka said .

Making remarks to the press, Mr. Ranawaka who is the United Republican Front leader said that the government intends to earn Rs.150 billion in terms of VAT revenue at the cost of ordinary businessmen with a daily turnover of more than Rs.100,000 in this manner.

The budget VAT reforms include lowering the annual turnover threshold for registration to Rs. 36 million, from Rs.60 million.

Commenting on the budgetary proposals, he said 30 percent of them are repetitions from the previous budget.

However, he said that certain proposals meant for streamlining tax collections are commendable.

Comments - 4

fact Monday, 10 November 2025 01:26 PM

Nothing wrong in collecting a tax from those who earn 100k or more /day and passing the benefits to people is commendable

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RP Monday, 10 November 2025 03:37 PM

Unfortunately you didn't understand what has been proposed. It's Rs 100,000 daily turnover. A business may have a 10% or lower margin. So, the owners don't earn 100,000 daily!

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Simple Maths Monday, 10 November 2025 03:43 PM

It's not earning but turnover per day. Most small business enterprises fall under the informal sector. Not all goods they sell have a VAT input. Will a grocery seller get a VAT invoice for the purchase of coconuts. Someone has given a dead rope to the policy makers who protect the big people. Government should start from the top with first source business enterprises with high value transactions and follow down the line.

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Dr Tissa Fernando Monday, 10 November 2025 06:43 PM

These businesses are already collecting VAT from customers. They are already paying VAT to their suppliers. They coukd recover the VAT on purchases so basically the retailers won't incur expenses but customers are going pay VAT multiple times.

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