Government will reduce VAT in future-Mangala

2019-07-09 at 16:57

Minister of Finance Mangala Samaraweera says the government will reduce the Value Added Tax in the near future.

Speaking in Parliament this afternoon the Finance Minister said the poor will not be taxed.

The Minister revealed from 2019 direct taxes were being gradually increased by the Inland Revenue Department.

The Minister stressed the government was only taxing those who had failed to pay taxes and those who could afford to pay taxes.

Minister Samaraweera expressed hope that concessions could be granted to the public if such efforts are continued, adding that by 2022 the 15% VAT can be reduced by a further 2%.

Minister Samaraweera also said the government will focus on increasing an income without burdening the public.

Minister Samaraweera added the government hoped to reduce the burden on the people and generate an income through other means.

The Minister clarified that increasing the income did not mean imposing taxes on the people.

Minister Samaraweera added the tax threshold had been increased and therefore a majority do not fall under its purview claiming that 82% of the country’s income was generated through indirect taxes.