The minister was speaking at a press conference at his ministry yesterday.
“Medical care services provided by private hospitals will be liable for VAT. The same goes for telecommunication services,” he said.
“The taxation areas that can have an adverse effect on day-today lives of the public have been avoided wherever possible,” he said.
“All prices are not going to go up due to VAT as some have put it to denigrate us,” he said and added,” the present tax takes effect owing to the legacy of corruption left by the previous regime .” “In other words, the present tax may be described as four percent Rajapaksa corruption cover tax.” “President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe have made their intentions clear that they do not want the public to be burdened by excessive taxation. We are trying to do our best to achieve that,” he explained.
Liable for increased VAT are import or supply of telecommunication equipment or machinery, high tech equipment including copper cables for telecom industry and the issue of license to local to local telecom operators by Telecommunication Regulatory Commission. The supply of goods or services to any specified project other than housing projects approved on or after May 5, 2016, will be taxed, Minister Karunanayake said.
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