Government hopes to reduce VAT on school materials, President’s Economic Advisor says
View(s):The government plans to reduce the VAT on school materials, including textbooks, as well as on essential foods and medicine to make education more affordable, Senior Advisor to the President on Economic and Financial Affairs Prof Anil Jayantha said during a recent meeting in Miriswatta.
The government was urged to remove VAT on educational materials to ease the financial strain on families at the meeting organised by the Sri Lanka Agricultural Development Council.
Responding to these concerns, Prof Jayantha said Sri Lanka has committed to increasing government revenue as part of its recent extended credit agreement with the International Monetary Fund (IMF).
By 2025, the government aims to raise its income to 15 percent of the gross domestic product, a target that may require maintaining certain indirect taxes, including VAT.
However, he acknowledged the impact of VAT on educational expenses and noted that a reduction in VAT from the current 18 percent to as low as 7 or 5 percent is under consideration for school materials.
Additionally, Prof Jayantha said President Anura Dissanayake has engaged with the IMF to explore options for reducing VAT or providing direct financial support to help schoolchildren access necessary supplies.
(NA)
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