Opposition Leader Sajith Premadasa has welcomed the government’s decision not to proceed with the proposed reduction of the Value Added Tax (VAT) and Social Security Contribution Levy (SSCL) turnover threshold, calling it “a win for Sri Lanka’s SMEs.”
In a statement posted on ‘X’, Premadasa expressed gratitude to Opposition members who campaigned against the move, stressing that while broadening the tax base is necessary, it should not come “on the backs of our smallest businesses.”
The proposal, announced earlier this year, sought to lower the annual turnover threshold for VAT and SSCL from Rs. 60 million to Rs. 36 million, effective July 1.
However, Deputy Minister of Economic Development Nishantha Jayaweera told Parliament yesterday (23) that the plan will not be implemented.
He said the decision followed clearance from the Cabinet of Ministers, the Attorney General, and recommendations from the Parliamentary Consultative Committee. (Newswire)