Treasury Secretary warns of VAT increase

8 July 2024 04:34 pm Views - 3805

Colombo, July 8 (Daily Mirror) - Treasury Secretary Mahinda Siriwardana announced today that meeting the salary increase demands of striking public servants would necessitate raising the current Value Added Tax (VAT) from 18% to 20-21%. 

Addressing the issue, Siriwardana stated that the government is not in a position to accede to these demands, as doing so would place an additional financial burden on the general public.

Meanwhile, President Ranil Wickremesinghe chaired a discussion at the President's office today to address the trade unions' demands.

However, the PMD stated that the 2025 budget will consider revising public service salaries based on recommendations from an expert committee on salary disparities.