Wholesale and retail trade excluded from VAT

Finance Minister Ravi Karunanayake said yesterday the wholesale and retail trade would be excluded from Value Added Tax (VAT).
The 2013 budget introduced a 12 percent VAT on supermarkets, wholesalers and retailers who had a turnover exceeding RS.500 million for a quarter. The 2014 budget brought the threshold down to Rs.250 million per quarter and the 2015 budget further brought it down to Rs.100 million per quarter. 
Though the VAT was imposed on the pretext that these entities were making higher profits, the impact of the VAT was eventually passed on to the customers.Now, the new national unity government is doing away with the VAT on them and the prices should ideally come down.