The recently increased Value Added Tax will only be revised and not repealed, according to Deputy Minister Ajith Perera.
The deputy minister said it was impractical to abolish the 4% increase in the tax rate, despite protests.
“At present, the increment of VAT has been interpreted as an unusual concept of ‘Good Governance’ by anti-government forces. But I would like to clarify that, VAT is a world known concept, and has prevailed for many years. VAT is a first-rated and practical tax. If somebody interpreted VAT as an ominous tax that person is not aware of the real concept behind VAT,” he said.
Meanwhile, shops in several areas in the south, including Hambantota, Ambalantota, Ratnapura and Balapitiya, were closed as traders staged protests against the increase.