President Gotabaya Rajapaksa has instructed the Consumer Affairs Authority (CAA) and the Inland Revenue Department to closely monitor the failure by anyone to implement tax concessions announced by the Government.
The Government had announced major tax concessions, including the reduction of the VAT tax and the cancellation of the NBT tax, Debit tax, PAYE tax and withholding tax on interest.
The Cabinet of Ministers had in November decided to cut the Value Added Tax (VAT) from 15% to 8%. The ceiling for VAT was raised to Rs. 25 million turnover per month from the existing Rs. 1 million.
In the meantime, the income tax on the construction industry was also reduced from 28% to 14%.
The Cabinet also announced that all religious places are exempted from taxes.