The government has decided to abolish the existing Simplified Value Added Tax (SVAT) system with effect from January 1, 2024.
Accordingly, the proposal submitted to the Cabinet to give instructions to draft laws to prepare a bill to amend the relevant provisions of the Value Added Tax (VAT) Act has been approved.
The Government Information Department said that two major reforms regarding Value Added Tax should be introduced in accordance with the International Monetary Fund’s Extended Funding Facility (EFF).
Accordingly, the government said the VAT system should be reformed by removing the majority of exemptions and the SVAT system should be abolished.
Approximately 1.2% of the gross domestic product from the tax income can be increased by reactivating the logic of the existing release of VAT.
