June 19, Colombo: The government has decided to remove several taxes levied in a number of fields including the Value Added Tax on private medical services from the 1st of July. Accordingly, private medical services, children's savings accounts and artists work will be exempted from taxes.
The Cabinet of Ministers has decided to remove the 15 percent Value Added Tax on doctorsí consultation fee, channeling fee and professional charges with effect from July 1st.
Minister of Health Dr Rajitha Senaratne on the instructions of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe has made the request to the cabinet to remove taxes from private medical services.
Speaking at a press conference in Colombo today Minister of Finance Mangala Samaraweera said, however, the VAT charged on private hospital rooms will remain unchanged.
The 5 percent tax levied on saving accounts of children under 5 years of age at any financial institution will be removed until the age of 18 in order to encourage savings.
It is also expected to provide special tax relief for artists.
The Finance Minister said that the direct tax revenues need to be increased in order to provide relief to the masses and those who are required to pay taxes should consider it as social responsibility and pay taxes.