Colombo (LNW): The Ports and Airports Development Levy (PAL) currently applied to fuel and gas will be eliminated with the implementation of the revised Value Added Tax (VAT).
Advisor on Tax Policy to the Ministry of Finance, Thanuja Perera, clarified that the 7.5 per cent PAL on fuel and the 2.5 per cent PAL on Liquefied Petroleum (LP) gas will be lifted with the commencement of the increased 18 per cent VAT on January 1, 2024.
The VAT (Amendment) Bill, endorsing the rise in VAT from the existing 15 per cent to 18 per cent, was approved by the parliament on December 11 with a majority of 45 votes.
The Bill, now enacted as the VAT (Amendment) Act No.32 of 2023, will lead to the removal of the PAL on fuel and gas.
