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VAT will be increased from May 2

The Ministry of Finance says that the Value Added Tax( VAT) will be increased to 15% with effect from May 2.

With this revision, Value Added Tax will now affect telecommunication and health sectors as well.

Therefore, supply of telecommunication services including the supply and imports of machinery, high tech equipment, copper cables used for telecommunication services and supply of health services which were earlier exempt from VAT, will now be liable for VAT.

The VAT will also be imposed to all supply of goods or services to any specified projects other than housing projects.

Amendments to the Nation Building Tax (NBT) and Share Transaction Levy (STL) were also announced by the Ministry of Finance.

The Nation Building Tax (NBT) will remain unchanged at 2%. And the NBT exemptions allowed on Telecommunication service, supply of electricity, lubricants and supply of goods or services to any specified projects other than housing projects, will be removed.

The Ministry of Finance further added that the share transaction levy (STL) will be re-imposed at the rate of 0.3 % from every buyer and seller, on the turnover of every share trading transaction, which is conducted through a stock exchange.
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