The Value Added Tax Amendment Bill was passed in Parliament last evening.

The VAT amendment bill was passed with a majority of 53 votes with 76 members of parliament voting in favour and 23 voting against the bill.

Following the approval of the bill in Parliament, the VAT rate will be increased from 11 to 15%. However several goods and services have been exempted from VAT following the amendment.

The Finance Minister said 81 goods and services including wheat flour, bread, milk powder, rice, tea, coconuts, eggs, sugar, dhal and medicine is exempt of taxes.

Minister of Finance Ravi Karunanayake said action will be taken against traders who increase prices of goods and services that are exempted of VAT.

(newsradio.lk)