State revenue up by 25 percent in Jan. after VAT increase

By Ajith Siriwardana and Yohan Perera  

State revenue has increased by 25 percent in January after the VAT increase, recording Rs. 274 billion in January 2024, whereas the estimated state revenue was Rs. 219 billion, State Minister of Finance Ranjith Siyambalapitiya said yesterday.  

The Minister said the Customs Department was set a target of Rs. 114 billion for January and it had recorded Rs. 121 billion, which is 11 percent more than the estimated revenue.  
“The Excise Department recorded Rs. 14 billion exceeding the revenue target of Rs. 12 billion. The Inland Revenue Department has recorded Rs. 114 billion more than the set target of Rs. 88.9 billion,” the Minister said.  

Speaking during the adjournment debate on the government policy statement, he told Parliament that inflation was recorded as 6.4 percent while the food inflation was only 3.3 percent.  
“Some people claimed that the prices of goods will go up excessively in January after the VAT increase. However, the inflation in January was recorded as 6.4 percent. Food inflation was only 3.3 percent. We managed to keep the food inflation low as essential commodities were exempted from the VAT. The non-food inflation was also recorded as 7.9 percent,” he said.  
The Minister said the increase in state revenue will ultimately benefit all the people in the country.