The Cabinet has decided to provide tax concessions in line with President Gotabaya Rajapaksa's election promises. Accordingly, the government has decided to reduce Value Added Tax (VAT) from 15% to 8%. Cabinet spokesperson Bandula Gunawardana said this VAT reduction will come into effect from 1 December. The government has also decided to remove the 2% Nation Building Tax (NBT), Pay As You Earn (PAYE) Tax and Withholding Tax on interests. The Cabinet has further decided to reduce the telecommunications levy to 25%. The Construction Industry Income Tax has been reduced from 28% to 14%. The government has also raised the VAT ceiling to Rs. 25 million turnover per month from existing Rs. 1 million. Gunawardane said the Government plans to bridge the gap of revenue by expanding the tax base. Gunawardan added that the government plans to collect a small percentage of tax from a larger base in order to relieve citizens from a huge tax burden.