VAT revision to affect water tariff

Water tariffs will see an increase of 3 per cent from January 1, 2024, the National Water Supply and Drainage Board (NWSDB) said. The increase follows the revision of the Value Added Tax (VAT) from 15 to 18 per cent, the NWSDB added .

The Sri Lankan Parliament on December 11, 2024 passed the VAT (Amendment) Bill with majority vote, approving a VAT hike from the current 15 per cent to 18 per cent. The new legislation was passed in line with the International Monetary Fund’s conditions set out for Sri Lanka to strengthen the crisis-hit country’s VAT revenue earnings.