Fuel prices may increase due to VAT.

The proposal to raise the current 15% VAT to 18% was passed by 45 votes in Parliament today.

With the new amendment, the government has decided to impose VAT on fuel as well. According to Samagi United Union of Trade Unions, the price of petrol and diesel will increase from the first of January.

Its convener Mr. Ananda Palitha points out that with the addition of new taxes, the price of a liter of petrol will increase by 62 rupees, and a liter of diesel will increase by 59 rupees. He further said that along with higher fuel charges, water and electricity charges will also increase.

Accordingly, the new revised VAT will be effective from the first of next month. In addition, many goods and services that were exempted from VAT have been brought under VAT.

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