Rajapaksa Misleading People On VAT Increase, Harsha De Silva Slams MR

Deputy Foreign Minister Dr Harsha de Silva slammed former President Mahinda Rajapaksa for his comments on the new VAT increase, saying that no new increase of the VAT has been introduced for the education sector.

"Knowing very well there is no imposition of new VAT on education services (removal of VAT exclusions) he attempts to mislead people by saying that fees from "nursery school to tertiary level as well as private tuition classes" will see an increase" De Silva said on his Facebook Page.

"Come on... be honest... let us debate based on the truth Mr Ex President" De Silva added.

Rajapaksa released a press statement yesterday in which he slammed the government for the increases in taxes. "While benefitting thus from lower global commodity prices, the government is now trying to increase the VAT rate from 11% to 15% and widen its applicability to hitherto exempt sectors like telecommunications, health and education. This will cause a 4% increase in the prices of goods on which VAT is already being charged and a sudden 15% increase in the costs of telephone and internet services, medical specialist channeling services, medical tests, private hospital care, private education from nursery school to tertiary level as well as private tuition classes" Rajapaksa said in his release.