VAT stays at 7% for another year

Finance Minister Uttama Savanayana confirmed on Tuesday (September 10) that the Cabinet has agreed to maintain value added tax (VAT) at 7 per cent for another year and has vowed to keep a close eye on the economy.

“Originally the 7 per cent VAT was set to expire at the end of this month,” Uttama said. “But the Cabinet has resolved to extend the deadline to September 30, 2020.”

He added that the extension was approved in line with the current economic situation.

“We are extending it by a year so we can monitor the economy and make adjustments accordingly on a year-by-year basis,” the minister said.