February 08, Colombo (LNW): In a recent update on fiscal performance, Finance State Minister Ranjith Siyambalapitiya announced a notable surge in state revenue, marking a 25 per cent increase in January following the implementation of a Value Added Tax (VAT) adjustment.
The revenue for January 2024 reached Rs. 274 billion, surpassing the anticipated figure of Rs. 219 billion.
Highlighting specific departmental achievements, Minister Siyambalapitiya noted that the Customs Department exceeded its designated target of Rs. 114 billion by recording Rs. 121 billion, representing an 11 percent surplus.
Similarly, the Excise Department surpassed its revenue goal of Rs. 12 billion by generating Rs. 14 billion in revenue.
Additionally, the Inland Revenue Department significantly outperformed expectations, recording Rs. 114 billion against a target of Rs. 88.9 billion.
Addressing concerns about potential price hikes due to the VAT adjustment, Siyambalapitiya highlighted that January’s inflation rate stood at 6.4 per cent, with food inflation at a modest 3.3 per cent.
He attributed this to the exemption of essential commodities from VAT, effectively mitigating price increases in this sector. Non-food inflation was reported at 7.9 per cent.
The Minister emphasised that the rise in state revenue will have positive implications for the entire populace, indicating broader economic stability and prospects for development.
