The Value Added Tax (VAT) and the Nation Building Tax (NBT) will be implemented from November 1, the Finance Ministry announced
The ministry said in a statement that VAT would be increased from 11 per cent to 15 per cent. It said the annual VAT threshold on the wholesale and retail market would be Rs.50 million while the general VAT threshold would be Rs.12 million.
The NBT rate would remain at 2 per cent with the NBT on turn over reduced to Rs.3 million from Rs.3.7 million. NBT will also be applicable on telecommunication services and electricity.
The Finance Ministry today published the list of goods and services which are exempted from the Value Added Tax (VAT). The list includes goods such as rice, bread, dhal, coconut, medicinal drugs, fuel and electricity.
The list as follows:
35.Medicinal drugs manufacturing machines
36.Medicinal drugs manufacturing instruments
37.Medicinal drugs packing appliances
42. White canes
46.Spectacle manufacturing raw materials
47.Out Patient Department’s (OPD) service
56.Vehicles with production tax
62.Rice processing machines
63.Bakery product machines
64.Milk producing machines
69.Solar power generating machines
70.Power saving bulbs
71.Power saving bulbs producing raw materials
74.Computers and accessories
80.Gems, pearls and diamonds
81.Gold and platinum
82.Selling of houses