School Supplies Caught in VAT Crossfire: Parents Bear Brunt as Costs Rise

COLOMBO (News 1st); The recent hike in Value-Added Tax (VAT) in Sri Lanka's 2024 budget has sparked concerns about its impact on essential goods, particularly school supplies. 

With an increase from 15% to 18% on specific products and services, and the reintroduction of VAT on previously untaxed items, anxieties are mounting over rising costs for families already struggling with an economic downturn.

While some clarification exists regarding exercise books being continuously subject to VAT, the broader impact on overall school supplies remains a pressing issue. 

Manufacturers point to increased VAT on raw materials like ink and paper, suggesting the final product may effectively bear a higher tax burden than the official 18%.

The Ceylon Teachers' Union expressed deep concern about the affordability of school supplies under the new VAT regime. General Secretary Joseph Stalin highlighted the potential cost of book lists exceeding Rs. 20,000-25,000, a significant burden for families facing economic hardship.

Amidst these concerns, many parents report already witnessing price increases for school supplies. While acknowledging the importance of education and their commitment to providing for their children, some families expressed the need to potentially cut back on non-essential expenses to cope with the rising costs.