President Anura Kumara Dissanayake has announced plans to reduce Value Added Tax (VAT) rates over the next two to three years to ease the financial burden on the public.
Speaking at a ceremony at Temple Trees on October 8, where appointment letters were presented to 1,540 newly appointed Grama Niladhari officers, the President also called for taxes on essential educational materials, including books, to be removed.
However, he noted that tax reductions must be balanced against rising government expenditure. The phased increase in public sector basic salaries is expected to cost an additional Rs. 330 billion by 2027.
The President said these financial commitments would need to be considered when preparing the 2027 Budget, scheduled to be presented to Parliament on November 12.
