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Value Added Tax, VAT

VAT reduced to 8%

Prime Minister Mahinda Rajapakse says the Value Value Added Tax (VAT) will be reduced from 15 percent to 8 percent.

The Prime Minister said that the decision was taken at the first Cabinet meeting of the new Government today, commencing his term at the Ministry of Urban Development, Water Supply and Housing.

Speaking at a press conference to announce the cabinet decisions at the moment, Co-cabinet Spokesman Minister Bandula Gunawardena said the VAT deduction would be effective from 1st December.

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