Mr. M. D. Paul, President of the Sri Lanka National Construction Association, says that after the increase in VAT effective from January 1, 2024, the total construction costs have increased by 20%.

He mentioned that many items like machinery, electricity and light bulbs which were previously in the exempt list are now applicable for VAT and due to this the construction costs have increased by 20%.

He also mentioned that the construction sector is facing a severe crisis due to the inclusion of fuel in the list of goods subject to VAT.
(colombotimes.lk)