Budget proposed VAT concessions from September
Budget proposed VAT concessions from September The Cabinet has approved the tax amendments presented by Finance Minister Mangala Samaraweera in the 2019 Budget.
The Nation Building Tax Amendment Bill and the VAT Amendment Bill presented in this regard have been approved by the Cabinet. The importation of vessels and vessels for entertainment and sport is exempted from the NBT. The NBT exemption granted to subcontractors in the construction sector will also be granted to the main contractor. In addition, processing and processing of imported gems is tax-free, and locally produced palm oil is exempted from tax. The VAT will also be amended.
The tax date will be revised to the 20th of next month to avoid inconvenience to the tax administration as well as to the tax administration by applying the VAT on the 15th and 20th of the month following the end of the tax period. The value-added tax imposed on condominium housing has also been revised. Accordingly, VAT will not be levied on housing projects which cost less than Rs. 25 million.
The VAT is not exempted from providing a condominium housing unit which has been signed by the Sale Agreement or has obtained a Certificate of Compliance from the relevant local authority prior to the enactment of the VAT Amendment Act.
In addition, the supply of locally manufactured rice prepared nuts is exempted from VAT. Similarly as the Budget 2019 proposes to increase the VAT on domestic sales of Export Oriented Board of Investment (BOI) units from Rs 75 to Rs 100 per unit. All these new amendments are to be tabled in parliament in September after the legislation is drafted.