President aims to cut VAT rates within two to three years

President Anura Kumara Dissanayake said on Thursday the government aims to reduce Value Added Tax (VAT) rates over the next two to three years.

He was speaking at Temple Trees at a ceremony to present appointment letters to 1,540 new Grama Niladhari officers.

The President said taxes on essential educational materials should be removed, so that children do not pay tax when buying books.

He said the government’s decision to raise public sector basic salaries in three stages will add Rs. 330 billion in spending by 2027. The government must balance this against relief for taxpayers, he said.

For households, the plan points to lower consumer taxes in the medium term, though no rates or dates were given.

The next national Budget is scheduled to be presented on 12 November.