| Update: | Compliance Alert - VAT rate increase to 18% approved |
| Date: | 2023-11-27 |
The Sri Lankan Cabinet approved the increase of the value-added tax to 18%.
It will take effect from 1 January 2024 and be imposed on certain goods and services to which the value-added tax is not yet applicable.
Furthermore, the Cabinet will implement some of the new tax proposals, effective as of 2024.
These include the tax imposition to accomplish tax revenue and primary balance targets, as agreed with the International Monetary Fund.
The relevant cabinet decision from 30 October 2023 is available here.