The proposal made by Finance Minister Basil Rajapaksa to proceed with the relevant activities, was approved by the Cabinet.
The implementation of this new tax will remove the existing (VAT) tax on such goods and services. Once the new tax is levied, the system of repaying it will also be abolished.
This tax is applicable to a wide range of goods and services such as alcohol, cigarettes, gambling and casinos. However, the government has so far not yet decided the percentage of tax.
The government intends to implement the new tax as soon as the relevant bill is passed in Parliament as an Act.