Major tax concessions announced by new cabinet

The new cabinet today 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.

Cabinet spokesman, Minister Bandula Gunawardena said that the VAT tax has been reduced from 15% to 8%.

The new cabinet met for the first time today with President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa.

Speaking at the post cabinet press conference, Minister Bandula Gunawardena said that the cabinet meeting today was focused on providing concessions to the public.

The Cabinet has given its approval to remove the Nation Building Tax (NBT), Pay As You Earn (PAYE) Tax and Withholding Tax on interest.

The Cabinet has further decided to reduce the telecommunications levy to 25%.

The Cabinet of Ministers also decided to cut the Value Added Tax (VAT) from 15% to 8%. The ceiling for VAT has been raised to Rs. 25 million turnover per month from the existing Rs. 1 million.

In the meantime, the income tax on the construction industry has also been reduced from 28% to 14%.

The Cabinet also announced that all religious places are exempted from taxes.