Full list of Goods and Services affected by VAT

Thursday, 27 October 2016 - 14:28

The Finance Ministry announced today that the amendments to the Value Added Tax and the Nation Building Tax will be effective from November 1st.

Accordingly, the current 11% VAT will be increased up to 15%.

VAT has been imposed on several goods including cigarettes, liquor, telephone services, electrical equipment, jewellery and powdered milk.   

However, it is significant that 82 essential commodities have been exempted from VAT.

At the same time, the VAT amendment passed in parliament yesterday has reduced the turnover limit of retail and wholesale VAT registration in one quarter to 12.5 million rupees from previous 100 million rupees.

At the same time, the average taxable turnover limit for a quarter year has also been reduced to 3 million rupees from previous 3.7 million rupees.

Cigarettes, liquor, telephone services, electrical equipment, jewelry and powdered milk were exempted from VAT in the past.  

However, prices of such goods likely to rise as VAT has been imposed on them under the new amendment.

Drugs, OPD services, surgical services and dialyses have been exempted from VAT but fees for consulting doctors and medical specialists as well as private hospital room have been categorized as taxable services.

Sale of housing and 31 food items including sugar, dhal, dried fish, vegetables, fruits, potatoes, red onion, big onion and chilies have been exempted from VAT.  

In addition, diesel, petrol, kerosene, mobile phones, construction equipment, computer and computer accessories, fishing gear and several other goods have also been exempted from VAT.

Although the existing 2% Nation Building Tax remains unchanged, the taxable turnover limit for a quarter year has been reduced to 3 million rupees from the previous 3.75 million rupees.  

Telephones, communication services and electricity have been included in the Nation Building Tax.  

The Finance ministry stated that new VAT on electricity would not affect the electricity bill. 

However, this would bring some impact on new businesses.

Full list is given below..

  1. Wheat
  2. Wheat powder
  3. Rice
  4. Sugar
  5. Dhal
  6. Salt fish
  7. Canned fish
  8. Maldives fish
  9. Curry powder
  10. Bread
  11. Fresh milk
  12. Tea
  13. Rubber
  14. Coconut
  15. Coconut oil
  16. Coconut milk
  17. Eggs
  18. Shrimps
  19. Fruits
  20. Vegetables
  21. Potato
  22. Sprats
  23. Onion
  24. Big onion
  25. Garlic
  26. Green gram
  27. Chilli
  28. Kidney peas
  29. Chick peas
  30. Black gram
  31. Coriander
  32. Peanuts
  33. Fertilizer
  34. Medicine
  35. Medicinal equipment
  36. Medicinal appliances
  37. Medicinal packaging
  38. Ayurveda products
  39. Wheel chairs
  40. Clutches
  41. Ear aids
  42. White canes
  43. Brail machines
  44. Brail papers
  45. Spectacle frames
  46. Products used to make spectacles
  47. OPD services
  48. Scanning services
  49. Medical tests
  50. Operation services
  51. Diesel
  52. Transportation services
  53. Kerosene oil
  54. Petrol
  55. Aviation fuel
  56. Vehicles with manufacturing VAT
  57. Bowsers
  58. Agricultural seeds
  59. Plants
  60. Agricultural machinery
  61. Tractor
  62. Paddy harvesting machinery
  63. Bakery product producing machinery
  64. Milk producing machinery
  65. Fishery equipment
  66. Plant nurseries
  67. Building equipment
  68. Electricity
  69. Solar power generating equipment
  70. Energy-efficient lightbulbs
  71. Equipment used to manufacture energy-efficient lightbulbs
  72. Education services
  73. Library services
  74. Computer and parts
  75. Computers and software
  76. Printed books
  77. Sports equipment
  78. Life insurance
  79. Mobile phones
  80. Gems, pearls and diamonds
  81. Gold and platinum
  82. Sales of lands