Construction expenses up by 20% following VAT hike

COLOMBO (News 1st) - Chairman of the  National Construction Association of Sri Lanka M.D. Paul said that overall construction expenses have risen by 20%, following the VAT hike which came into effect from the 1st of January, 2024. 

He said that the construction industry is facing a grave crisis, due to the inclusion of fuel to the list of items to which the VAT is applicable. 

He added that many items such as machinery, electricity, and light bulbs, which were previously on the exempt list, are now applicable for VAT, and that due to this, construction expenses have shot up by 20%.