ECONOMYNEXT – Sri Lanka will charge value added tax (VAT) on sweetened milk powder, both imported and locally-made, a senior Treasury official said.
A.K. Senevirathna, Director General of the Department of Fiscal Policy, said locally made unsweetened milk will not be liable for VAT while imported milk powder will be.
“However, sweetened milk will be liable for VAT,” he told a news conference.
He said the government aims to raise an extra Rs100 billion ffro the increase in VAT to 15% from 11%.
“We raised Rs280 billion for the current year with VAT at 11%. From next year VAT collections should be Rs375-380 billion.”
(COLOMBO, Oct 28, 2016)