The Sri Lankan Cabinet has given its approval to reduce the Value Added Tax (VAT) registration threshold from Rs. 80 million per annum to Rs. 60 million per annum, effective from January 1, 2024. This decision, aimed at potential economic adjustments, was announced following the parliamentary passage of VAT amendments.

President Ranil Wickremesinghe is presently delivering a special statement in Parliament, elucidating the details and implications of the approved VAT amendments. The reduction in the registration threshold is expected to impact businesses across various sectors.

The VAT amendments, which garnered approval in Parliament yesterday, have prompted the President to address the legislative body with a comprehensive overview. The special statement is likely to shed light on the government's rationale behind the threshold adjustment and its anticipated effects on businesses, taxpayers, and the broader economic landscape.