Sri Lanka to lift VAT from small apartments, NBT off hotels

ECONOMYNEXT – Sri Lanka has lifted value added tax from apartments costing below 25 million rupees, while the payment date for VAT has been shifted to the 20th of the following month in changes approved by the cabinet this week.

The changes will be presented to parliament in September, the finance ministry said.

Housing units which had got a compliance certificate from local government authority or had a sale agreement under the Notary Ordinance before the VAT act was changed, will also be exempt.

Rice Bran oil manufactured out of locally produced red rice will exempted from VAT.

A VAT of 75 rupee per item of garment sold locally by a Board of Investment approved apparel company has been increased to 100 rupee per item.

Nation building tax has been lifted from hotels registered at the tourist board if they receive payments through local commercial banks.

Imported yachts and other vessels for pleasure or sport will be exempted from Nation Building Tax.

NBT will also be lifted from sub contractors. Earlier only the main contractor was exempted.

Palm Oil made with imported crude palm oil will also be exempted from NBT. (Colombo/Aug06/2019)