The government yesterday announced a major change to its tax policy through the 2026 Budget, with the annual turnover threshold for the registration of Value Added Tax (VAT) and the Social Security Contribution Levy (SSCL) to be reduced from Rs. 60 million to Rs. 36 million.
The new measure will take effect from April 1, 2026, and aims to broaden the tax base, according to President Anura Kumara Dissanayake, who presented the 2026 Budget in Parliament on Friday (07).
President Dissanayake noted that as of September 30, 2025, the number of registered taxpayers had risen by 300,000 compared to 2024.
Outlining the fiscal framework, the President announced that the expected government revenue for 2026 is Rs. 5,300 million, with expenditure estimated at Rs. 7,057 million, resulting in a budget deficit of Rs. 1,757 million or 5.1% of GDP.
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