Concern over VAT increase | Daily News

Concern over VAT increase

Mercantile sector Tax Division Principal Suresh Perera expressed serious concern over the Government’s increase of VAT from 8 percent to 12 percent stating that this decision will affect the consumers more than the traders who sell goods at different prices.

He said consumers are the most vulnerable sector who face immense hardships due to the sudden tax increase.

Recalling a past incident where a sudden tax reduction announced by the Government in 2019, Suresh Perera said at that time when the VAT was reduced from 15 per cent to 8 per cent the situation also benefitted to traders who did not pass the benefit of tax reduction to consumers.

He therefore said authorities should further look into this matter and try to protect consumers from traders who sell their goods at exorbitant prices under the cover of the tax increase.

Meanwhile, leading fruit sellers in Colombo said that due to the VAT increase, the prices of a number fruit varieties have seen a drastic increase.

Accordingly, a kilo of apples has increased by Rs.600.00 while a kilo of fresh grapes is sold at between Rs.1500 and Rs.1600.

A leading fruit seller at the Pettah Market also said their daily sales have drastically dropped due to the increase in increase.

 


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