Deputy Minister of Economic Development Nishantha Jayaweera stated that the VAT revision from 01 July is intended to simplify the tax system.

He noted that VAT and the Social Security Contribution Levy will be merged into a single tax.

Banks and financial institutions will pay a consolidated 20.5% VAT instead of separate taxes, he stated.

The Deputy Minister added that the move will reduce administrative requirements and is not a new tax increase.