January 22, Colombo (LNW): Transport Minister Bandula Gunawardena has indicated that the government is considering the establishment of VAT-Free shops nationwide to address the perceived misconceptions and concerns related to the Value Added Tax (VAT) on consumer goods.
Minister Gunawardena addressed public misconceptions, stating that there is a prevailing belief that all consumer items are subject to VAT, contributing to the perception of increased prices.
Acknowledging the need to alleviate public concerns, Gunawardena disclosed that instructions have been issued to conduct a feasibility study.
The study aims to identify suitable locations under the purview of the Road Development Authorities (RDA) for the establishment of VAT-Free shops, he emphasised.
He outlined that the government intends to take proactive measures by creating a network of shops throughout the country dedicated to non-VAT items. These shops would offer essential products such as vegetables, rice, and baby milk powder, promoting fair and competitive trade practices, he noted.
While the proposal may be seen as an attempt to address public concerns, critics argue that such measures may be reactive and could have been avoided with clearer communication about the specific items subject to VAT.
The move raises questions about the effectiveness of the government’s communication strategy regarding tax policies and its responsiveness to public perceptions.
