Sri Lanka, June 5 -- The upcoming repeal of the Simplified Value Added Tax (SVAT) regime is projected to significantly bolster Sri Lanka's Value Added Tax (VAT) revenue, with an estimated additional Rs.191 billion expected to flow into state coffers annually.

This forecast comes from an Inland Revenue Department (IRD) note titled "VAT Compliance Improvement Plan 1 - SVAT Participants Post Repeal 2026."

The IRD's plan outlines the transition for Registered Identified Suppliers (RIS) and Purchasers (RIP) as they move away from the SVAT system, which is set to be discontinued from October 1, 2025. The Rs.191 billion figure specifically represents the anticipated annual contribution to VAT cash flows from businesses currently operating as...