IMF recommends VAT & Income Tax increases

COLOMBO (News 1st); The International Monetary Fund has recommended that Sri Lanka focus on strengthening VAT and income taxes, through rate increases and base broadening measures.

This is to restore macroeconomic stability and debt sustainability, implementing a credible and coherent strategy covering both the near and medium term, that is needed.

The recommendation was made via a press release by the IMF following the conclusion of the Article IV consultation with Sri Lanka by the Executive Board.

It also recommended that fiscal adjustment should be accompanied by energy pricing reforms to reduce fiscal risks from lossmaking public enterprises. Institution building reforms, 

such as revamping the fiscal rule, would help ensure the credibility of the strategy.