Businesses with an annual turnover of more than 50 million rupees to be charged with VAT - Telecommunication, tobacco products and Air tickets included
The government has decided to charge Value Added Tax from retail and wholesale businesses if they report an annual turnover of over 50 million rupees.
This was announced at the media briefing held today to inform Cabinet decisions.
In addition, 15% VAT will be charged from telecommunication services, tobacco products, sweetened milk and air tickets.
VAT will also be charged from private medical services; except OPD, diagnosis test reports, dialysis and doctor channelling fees.
Meanwhile, journalists pointed out that the new tax on telecommunication services will compel customers to pay heavy charges.
Meanwhile, a special discussion over the tax increase on tobacco was held at the Power and Renewable Energy Ministry this afternoon.
Members of the special Cabinet Sub Committee appointed to look into the matter - Ministers Malik Samarawickrama, Sarath Amunugama, Ranjith Siyambalapitiya and Patali Champika Ranawaka, participated in the discussion.
A few representatives from the Finance Ministry and a group of experts from the health sector also joined in this discussion. The outcome of the meeting will be submitted to the Cabinet thereafter.