Finance Minister Ravi Karunanayake said that the Value Added Tax increase is a temporary measure and that it will be reduced by next year.

Addressing a meeting at the Colombo North UNP party office yesterday he said that the increase of the VAT was done to pay back the loans obtained during the Rajapaksa era.

Karunanayake added that the VAT is less under this government compared to that of the Rajapaksa government at a certain time. During that period the VAT was 20 percent, he added.