6 May 2016
VAT Rate Rises to 15% while 0.3% Share Transaction Levy is also Re-imposed
SRI LANKA: A rise in VAT to 15% came into effect as of May 2. The new rate replaces the previous 8% and 12.5% bands. VAT is now payable on all items except for those specified on a government-approved negative list. Among the exempt items are water, electricity, education and medicines.
The legislative change follows earlier moves to reintroduce the Share Transaction Levy. As of April 15 this year, all transactions on the Colombo Stock Exchange have been subject to a 0.3% fee. The fee is payable by both buyers and sellers.
The National Building Tax, a surcharge on all importers, manufacturers, retailers and service providers, remains unchanged at 2% of turnover per quarter for liable businesses.