Removal of VAT on Books a Positive Step - Dinamina

The Sri Lankan government, led by the President, has officially decided to remove the Value Added Tax (VAT) on books and publications in the upcoming budget, an announcement made by Prime Minister Dr. Harini Amarasuriya at the Colombo International Book Fair. This move corrects a "historical mistake" from early 2024, when an 18% VAT was imposed on books, magazines, and printing raw materials under the Ranil Wickremesinghe administration. The previous tax burden caused book prices to soar, turning books into a luxury, deterring readers, and severely impacting the printing and publishing industry, with many small and medium-sized firms facing closure. The decision is lauded as a positive and timely step, bringing Sri Lanka closer to developed nations like the UK, which has 0% VAT on books, and is expected to make books more affordable, encouraging a return to reading. The article also suggests that providing import tax relief for printing paper and ink would further benefit the entire printing industry.