Traders not registered but charging VAT to be booked :
Traders charging VAT for exempted items noted :
Tough action would be taken against errant traders who try to take advantage of the current VAT increase and fool the public, Finance State Minister Ranjith Siyambalapitiya said.
He said that some of these traders do not pay VAT but charge VAT from the public while others also charge VAT from the public for items that are not taxable such as medicine and some food items.
“We will take tough action against them and bring these errant traders to book,” he warned.
The State Minister also said that it’s also not true to say that this is the first time tax was imposed on books and stationery.
“VAT was imposed on them by earlier Governments.” “When the VAT was initially introduced it was at 20% and today we have increased it from 15% to 18%.”
Under the new tax system, an item which was at around Rs.500 will only increase by Rs.13.20 and not a huge increase as stated by political parties. He said that boosting Government revenue is crucial for Sri Lanka’s economic recovery, especially when the country is trying to move away from the current crisis and aiming to establish a more sustainable economic environment. Tax is needed to provide security, welfare and other benefits to citizens and tax was collected for centuries. “Though some say that 18% VAT is the highest in history this is not true,” he said at a special press conference held yesterday at the Finance Ministry. He said that rival political and other pressure groups say that some industries will shut down due to VAT increase.
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