Colombo, April 17 -- The Inland Revenue Department (IRD) declared that locally produced liquid milk and yogurt are now exempt from Value Added Tax (VAT), following the enactment of the Value Added Tax Amendment Bill in Parliament.

The bill, which was approved on April 9 and received the formal assent of Speaker Dr. Jagath Wickramaratne on April 11, officially came into effect on the same day. As a result, VAT on liquid milk and yogurt has been removed from April 11 onward.

According to the IRD, to qualify for the exemption, fresh milk must contain at least 50 percent content.

In a statement, the IRD also noted that the VAT exemption extends to naphtha supplied by the Ceylon Petroleum Corporation to the Ceylon Electricity Board for the ...