Srilanka, April 18 -- The government has decided to remove VAT on locally produced milk and yoghurt.
Following the enactment of the Value Added Tax (Amendment) Bill, the Inland Revenue Department (IRD) announced that locally produced liquid milk and yoghurt are now exempt from Value Added Tax (VAT).
In a statement issued this week, the department explained that the VAT exemption came into effect from April 11, when the Bill received parliamentary approval from Speaker Dr. Jagath Wickramaratne. The Bill was passed in Parliament on April 9.
The department stressed that to qualify for the exemption, liquid dairy products must contain at least 50 percent fresh milk, the department stressed.
In addition to dairy products, VAT has also been r...