The Minister of Finance and Mass Media Mr. Mangala Samaraweera considering the requests made by the stakeholders in the fabric industry has reduced the Value Added Tax (VAT) on imported fabric to 5 percent. Minister Mangala Samaraweera signed the gazette notification in this regard today.
Earlier the fabric was subject to Rs 100/kg CESS at the time of imports. The Budget- 2108 had proposed to impose a 15 % VAT on goods, the Value Added Tax Act No 14 of 2002 was amended accordingly, and the new VAT scheme came into effect from August 16, 2018.
