Warning to those withholding VAT deduction benefits | Daily News


 

Warning to those withholding VAT deduction benefits

Those who fail to pass on the benefits of the reduction of VAT and other taxes granted by the government effective January 10 to the public beware.

The Inland Revenue Department will take steps to levy the normal taxes from such persons as before Commissioner General of Inland Revenue Nandun Guruge said.

He said those taxpayers would not be allowed to pocket the proceeds from tax reductions by themselves without passing on that benefit to the general public as the department would keep a close tab on the process involved.

However, VAT due for December 2019 would have to be paid up to the department before January 20 this year. “As soon as President Gotabaya Rajapaksa assumed power, the Value Added Tax which stood at 15 percent was reduced to 8 percent on the initiative of Prime Minister and Finance Minister Mahinda Rajapaksa,” Guruge said. “The limit on PAYE tax was increased from Rs.100,000 to Rs.250,000. The Income Tax percentage which stood at a maximum 24 percent was reduced to 18 percent. This provided great relief to people who had paid taxes so fare. As such they should try to pass on the benefit to the consumer public without trying to pocket it by themselves,” he said.

He said all tax money received by the department would be credited to the Treasury.


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