Skip to Content

Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2368

VAT on imported fabric reduced to 5 percent

Colombo, 18 September, (Asiantribune.com):

Minister Mangala Samaraweera after considering requests by stakeholders in the fabric industry decided to reduce the VAT on fabric to 5 percent.

The gazette notification in this regard was signed by Minister Samaraweera yesterday.

The 2018 Budget proposed to impose a 15 % VAT on goods, the Value Added Tax Act No 14 of 2002 was amended accordingly, and the new VAT scheme came into effect from the 16th of August this year.

As fabric was also subject to the 15 percent VAT, importers, traders and industrialists engaged in using fabric as raw material for making readymade garments had appealed to the Minister of Finance to provide concessions as small scale traders and industrialists who are not covered under the VAT act have an adverse effect.

The Minister reached the decision to amend the VAT act further to reduce the VAT on imported fabric to 5 percent considering the possibility of providing a helping hand to proposed small scale industrialists under the enterprise Sri Lanka scheme.

- Asian Tribune -

Minister Mangala Samarweera.
diconary view
Share this


.