President Anura Kumara Dissanayake has announced that the Government aims to reduce Value Added Tax (VAT) rates over the next two to three years to ease the tax burden on the public.
The President made these remarks yesterday (08) at a ceremony held at Temple Trees to present appointment letters to 1,540 officers recruited to Grade III of the Grama Niladhari Service.
He said the Government’s development strategy focuses on creating economic opportunities and providing essential facilities within rural communities, rather than encouraging people to migrate from villages to cities.
The President stressed the importance of developing road networks connecting villages and cities, improving communication facilities and strengthening the public service to ensure that people can meet their economic and social needs without leaving their communities.
He also acknowledged that public servants deserve fair salaries and said the Government had increased basic salaries and allowances despite facing difficult economic circumstances. However, he emphasised that public expenditure must be carefully managed, as public sector salaries are funded through taxes collected from citizens.
The Government has planned an additional expenditure of Rs. 330 billion for public sector salary increases by 2027. President Dissanayake said the next Budget, scheduled to be presented on November 12, would address the financial requirements for these salary increases before further decisions are made on allowances.
As part of efforts to improve the Grama Niladhari Service, the Government has introduced a separate service structure and salary scheme while addressing longstanding issues affecting officers. The office allowance has been increased from Rs. 1,000 to Rs. 2,000, the uniform allowance from Rs. 5,000 to Rs. 15,000, and the stationery allowance from Rs. 1,500 to Rs. 3,000.
The President also outlined plans to modernise public administration through digitalisation, including a proposed pilot project in two districts next year. The initiative is intended to streamline services provided by Grama Niladhari officers, Divisional Secretariats and other government institutions while reducing unnecessary visits to offices.
He added that the Government was taking steps to provide public institutions with the vehicles, computers and other equipment needed to improve efficiency and service delivery.
Emphasising the importance of the Grama Niladhari Service, President Dissanayake said officers played a crucial role in connecting the State with the public and implementing government policies at village level.
He urged the newly appointed officers to serve the public with responsibility and integrity, noting that they would often be the first government officials people turn to during significant life events and times of hardship.
