Value Added Tax (VAT) exemption that was applicable on certain goods and services including importation of air crafts and accessories, sawn timber and fabrics and sale of condominium housing units has been removed under the Value Added Tax (Amendment) Act, No.25 of 2018. However, considering the requests made by the relevant stakeholders in these fields, the proposal made by Hon. Mangala Samaraweera, the Minister of Finance & Mass Media, to amend the Value Added Tax (VAT) Act enabling to re-introduce the tax exemptions imposed on importation of air crafts and accessories, sawn timber and fabrics and locally manufactured Rice Bran oil and with a view to protecting the Government revenue and enable the Minister to determine and prescribe by regulation the basis for the imposition of VAT on certain goods, was approved by the Cabinet.
Cabinet decision by re-introducing exemptions to the VAT Act
