VAT out but no reduction of diesel price
Despite the decision of the government to take off the Value Added Tax (VAT) from diesel, the current price of a litre of diesel will remain the same, Chairman of Sri Lanka Petroleum Corporation Jaliya Medagama said.
According to him the government decided to remove the VAT from diesel although the price of diesel has gone up in the world market. “We sell a litre of diesel at Rs.50 inclusive of VAT. But if we go by the world price we should sell a litre of diesel at Rs.65. The government has decided not to collect VAT from the consumers and to bear the burden by the government itself. Hence there is no change in the present price of diesel in the local market. So there is no price reduction for diesel although the government removed VAT from diesel,” he said.
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