Sri Lanka, April 17 -- The Inland Revenue Department has issued a special announcement outlining several key changes to the Value Added Tax (VAT) structure.

Effective April 11, VAT has been removed on locally produced liquid milk and yogurt, provided the products contain at least 50% fresh milk. This move is aimed at supporting local dairy production and reducing consumer costs.

In addition, VAT has also been removed on naphtha supplied by the Ceylon Petroleum Corporation to the Ceylon Electricity Board for electricity generation purposes.

Meanwhile, the department has announced the imposition of VAT on digital services offered by non-resident providers. Under the new Value Added Tax Amendment Act, these services-delivered to users in ...