The Government has exempted the Value Added Tax (VAT) from supply of services in respect of inbound tours by travel agents registered with the Sri Lanka Tourism Development Authority.
This VAT exemption came into effect from April 1.
Industrial Exports and Investment Promotion, Tourism and Aviation Minister Prasanna Ranatunga said yesterday the Cabinet Memorandum submitted by Prime Minister Mahinda Rajapaksa considering long term requests of inbound tour operators and travel agencies in the country for the tax concession was approved by the Cabinet.
There are over 1,000 travel agents providing inbound travel services are registered with SLTDA. However, the COVID-19 pandemic has kept thousands of visitors away and deprived these operators of a key source of income. He further said the tourism industry that had collapsed as a result of the COVID-19 will be reviewed with the implementation of a number of strategies and programmes in the future.
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