Finance Ministry yesterday (02) issued an extraordinary gazette notification for reducing Value Added Tax (VAT).

Accordingly, there will be no VAT charged on the supply of services by a hotel, guesthouse, restaurant or other similar business providing similar services, registered with the Sri Lanka Tourism Development Authority, if 60 % of the total value of the inputs is sourced from local supplies or sources.

The VAT on the supply of financial services will be at the rate of 15%.

The VAT will be charged on the import and supply of goods or supply of services, at the rate of 8%.

The VAT rates became effective from December 1, 2019.