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Sri Lanka’s nine provincial councils will raise business turnover tax from one percent to five percent on “non-essential” commodities from April 1 to bolster their own revenue. The list of items coming under the increased turnover tax rate includes all forms of tobacco and alcohol, household goods and motor vehicles including road going tractors and trailers.
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The December 2004 government gazette notification which announced the increase in BTT also added ceramic and sanitary fittings and electrical items to the five percent list.
Coconut timber was also added to the list of timber products that already pay five percent BTT.
Manufactured furniture that is also already paying five percent BTT will see fiber and steel furniture added to its list.
A senior Western Provincial Council official said on Monday that a rapidly increasing expenditure bill and reluctance by the central government to increase allocations in proportion to expenditure estimates prompted the increase in the turnover