The National Book Traders Association has reported a sharp 20% increase in printed book prices following the imposition of an 18% Value Added Tax (VAT) and Nation Building Tax (NBT), effective from January 2024.
According to Samantha Indeewara, President of the Sri Lanka Book Publishers’ Association, the spike in prices stems from a policy shift that saw books—previously exempt from VAT—now subject to the full 18% rate. In contrast, stationery, which was already taxed at 3%, has also risen to 18%, but the overall impact is more pronounced for books, which moved from 0% to 18% overnight.
“This is a fundamental change. Officials seem to be confusing the tax history of books and stationery,” Indeewara said, speaking at the annual anniversary event of the National Book Traders Association.
The Presidential Secretariat has acknowledged receipt of industry concerns and is currently conducting an analysis, though no formal response has yet been issued.
Gamini Moragoda, Patron of the Association, called the tax “unprecedented globally,” warning that it poses a direct threat to the survival of the local publishing industry.
“A VAT that is not levied in any other country in the world is being imposed on our books. The introduction of this tax, which had not existed in Sri Lanka for 75 years, starting in January 2024, is destroying the book industry. If this continues, a child will not be able to afford a book in the future,” he added.
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