VAT on fuel widely misunderstood: Harsha

18 December 2023 12:18 am Views - {{hitsCtrl.values.hits}} 22 Bookmark

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Points out that Ports and Aviation Levy currently charged on fuel will be waived when the 18 percent VAT comes into effect

By Yohan Perera

The Valued Added Tax ( VAT) is not a monster as portrayed by many, specially when it comes to the proposed application of the increased VAT rate on fuel, an Opposition MP said yesterday.

Samagi Jana Balawegaya (SJB) MP Harsha de Silva told a press briefing that Ports and Aviation Levy (PAL) which is currently charged on fuel will be waived when the 18 percent VAT comes into effect.

“Some talk with ignorance, while there may be others who falsely claim that fuel prices will go skyrocketing when 18 percent VAT comes in,” the MP said.

Meanwhile, Dr. de Silva who is also the Chairman of Public Finance Committee in parliament said the government should follow Singapore and focus on increasing dividends from State-owned enterprises (SOEs) as a means of maximising revenue.

“The Singaporean government only owns a certain stake of the country ‘s port. Sri Lanka also should follow this pattern in a bid to enhance dividends from State-owned enterprises as means of revenue generation,” he stressed.

Also, he said Sri Lanka has only completed three quarters of the debt restructuring process.”Sri Lanka has managed to strike an agreement with the Paris Club, Exim Bank of China, India and Japan. However, it is yet to reach a deal with commercial creditors. Therefore the country is yet to achieve full financial stability,” he added.