VAT could be lifted by the end of 2019 – Mangala
Minister of Finance Mangala Samaraweera says the Value Added Tax could be removed if the expected income is generated through the new Inland Revenue Act by the end of 2019.
Speaking at a media breifing at the Finance Ministry the Minister said they hope to lift the tax gradually.
The Minister said if the government can reach its goal by next year, if not a 60:40 ratio but some progress, the government may even be able to lift the VAT.
Minister Samaraweera accepted the fact that the VAT is too much, and that the Ministry of Finance is aware of that.
The Minister stated that it can’t be lifted immediately, but maybe gradually adding that even if people pay taxes or not, it is good to have a tax number, however the Minister stated that is a proposal by him looking at the future and that there is no provision for that in this Act.
The Minister also refuted statements that money sent by local expatriates will be taxed.
Minister Samaraweera noted that people are claiming that the government is going to tax money being sent by expatriates and added that the statement is completely false.
The Minister said if anyone earns money or send money to the country, they are exempt of taxes for a saving or deposit of up to 15 million.