Senior Adviser to the President on Economic and Financial Affairs Prof. Anil Jayanta said that the government’s focus is on abolishing the VAT levied on school equipment including essential food items, medicine and exercise books.
The professor said this while participating in the Gampaha District Entrepreneurs’ Meeting organized by the Chairperson of the Sri Lanka Business Development Council, Mrs. Sashika De Silva.
He commented on the VAT levied on books.
“We have now obtained an extended credit facility with the International Monetary Fund and reached a series of agreements. Accordingly, it has been agreed to meet certain standards. By 2025, the country’s government revenue as a percentage of the gross domestic product has been targeted to increase to 15%.
In order to achieve this goal, indirect taxes such as VAT should be collected. Exemption of school equipment from this tax should be studied very carefully. President Anura Kumara Dissanayake Head of IMF Talked about this in the discussion with. One suggestion was to reduce the percentage of VAT charged in this sector, which is currently 18%, to seven or five percent instead of making it 0%.
Another suggestion was to give a financial grant to school children to buy equipment. Such proposals are before us. But a decision has not yet been taken to take a final decision in this regard. ”