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Sri Lanka government imposes VAT on Essentials, Health to cover increased Salaries of unproductive and iddling State Sector

Sri Lanka government raises VAT following IMF demands - World Socialist Web Site: In an attempt to pacify small traders, the bill contains some cosmetic changes, such as increasing the VAT threshold for retail traders from 15 million rupees ($US103,000) per annum to 50 million rupees. However, the VAT will now be imposed on essential services, such as health, telecommunications and basic food items, including milk powder, that were previously excluded.
The VAT on telecommunication services will be 50 percent and there will be sharp hikes in medical consultation fees and operations in private hospitals. VAT exemptions on low-cost housing projects are to be reduced and will now apply to residential accommodation projects worth less than $5 million.
In addition to the higher VAT charges, the government is increasing Special Commodity Levies (SCL) on essential food items. The levy on sugar, for example, has been raised by nearly 2 rupees per kilogram. A 75-rupee levy also will be imposed on the local sales of garments produced for export.
Sri Lanka government imposes VAT on Essentials, Health to cover increased Salaries of unproductive and iddling State SectorSocialTwist Tell-a-Friend

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