President Ranil Wickremesinghe, in his parliamentary address, indicated plans to alleviate the tax burden on citizens amidst ongoing economic reforms, potentially leading to a revision of the Value-Added Tax (VAT) rate.
With economic stabilization efforts underway, the government aims to create space for a VAT percentage review, acknowledging the strain caused by the recent increase from 15% to 18%. The President assured systematic approaches to address this issue, emphasizing the need to prioritize citizens’ welfare.
The President’s policy statement, presented during the Fifth Session of the Ninth Parliament, highlighted significant growth in tax registration, indicating a positive trend in revenue collection. As the tax network expands, the government anticipates a reduction in individual and organizational burdens.
Additionally, Wickremesinghe pledged to enhance benefits for citizens as government revenue grows, emphasizing the importance of prudent fiscal policies to drive economic prosperity.
Amidst economic reforms, the President expressed optimism about achieving sustainable growth, with forecasts projecting significant improvement in the coming years. Wickremesinghe reiterated his commitment to prioritize the country’s economic well-being over political gains, urging the public to recognize the necessity of these measures.
Furthermore, plans for debt restructuring within the first half of 2024 were unveiled as a strategic move to alleviate financial pressures and restore economic stability. Wickremesinghe emphasized the importance of local revenue generation to mitigate debt burdens and achieve fiscal balance.
In addition to economic reforms, the President underscored initiatives to modernize educational and healthcare sectors, ensuring inclusivity and fostering technological advancement. Wickremesinghe invited collaboration from opposition parties in nation-building efforts, urging unity for the nation’s prosperity and youth’s future.
