Amendments to Value Added Tax (VAT) and Nation Building Tax (NBT) proposed by the Finance Minister has been approved by the Cabinet.
Announcing the approval of the Amendment Draft Bill, the Finance Ministry said in a statement yesterday (6) that payments in foreign currency received through local commercial banks by hotels, guest houses, and restaurants registered with the Tourist Board will be exempted from NBT.
NBT will also be lifted from main contractors in the construction industry, whereas it was only received by subcontractors previously.
Moreover, VAT will not be charged for condominium housing units if they are sold for less than Rs. 25 million each.
Rice Bran oil manufactured out of locally produced red rice will also be exempted from VAT, the Finance Ministry added.