Even India charges 18 percent GST from certain sectors: President

12 December 2023 02:20 pm Views - 1512

BY YOHAN PERERA AND AJITH SIRIWARDANA

Justifying the increase of the Value Added Tax (VAT) to 18 percent from next year, President Ranil Wickremesinghe told Parliament that even India charges 18 percent Goods and Services TAX (GST), especially from the IT sector.

“It is our policy to increase the VAT to 18 percent. Therefore, it should be imposed on all sectors. You cannot exempt some services and make other sectors liable,” the President said.

Some in the IT sector are shouting about the increase of VAT to 18 percent. However, they can survive even with an 18 percent VAT rate as most of them are export-oriented. Those in the IT sector who provide their services overseas are exempted from income tax. Therefore they can benefit,” he said.