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Sri Lanka hikes VAT to 15%

  • Mar 7, 2016 | Richard Asquith

Sri Lanka hikes VAT to 15%

Sri Lanka announced this week that it intends to raise VAT from the current 11% to 15%.

The rise will be subject to Parliament's approval and not implementation date has been set.  The zero rating for telecoms, health and private education services will be withdrawn.

There was a plan at the start of this year to split the current 11% rate into differing rates for goods and services. This was withdrawn.

The rise is seen as an important condition to closing a $1.5billion load from the International Monetary Fund. Sri Lanka will also introduce a capital gains tax regime.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.