Sri Lanka set to exclude electricity, kerosene from VAT

Sri Lanka is poised to retain the exemption of value-added tax (VAT) for electricity, kerosene, and naptha, according to Treasury Secretary Mahinda Siriwardena. 

Speaking at an economic forum organized by the Ceylon Chamber of Commerce, he outlined the policy direction to eliminate exceptions, with the notable exclusions being electricity, kerosene, and naptha.

The country currently imposes various taxes on petrol and diesel, including excise tax and border taxes. Siriwardena mentioned ongoing considerations to potentially eliminate or reduce the port and airport levy (PAL).

This move aligns with Sri Lanka's broader strategy to phase out most VAT exemptions, aiming to bolster revenue collection from the public to sustain government functions.