Sri Lanka, April 17 -- The Inland Revenue Department (IRD) announced that locally produced liquid milk and yogurt are now exempted from Value Added Tax (VAT), following the enactment of the Value Added Tax (Amendment) Bill.

In a statement issued this week, the department clarified that the VAT exemption came into effect on April 11, the day the bill received parliamentary assent from Speaker Dr. Jagath Wickramaratne. The bill was passed in Parliament on April 9.

To qualify for the exemption, liquid milk products must contain at least 50 percent fresh milk, the department emphasized.

In addition to dairy products, VAT has also been removed on naphtha supplied by the Ceylon Petroleum Corporation (CPC) to the Ceylon Electricity Board (CEB...