21% VAT hike? : Update from Treasury on strike demand
The Value Added Tax (VAT) will require to be increased from the current 18% to 20-21% if the striking public servants’ demand for a salary increase is met, Treasury Secretary Mahinda Siriwardana said.
Mahinda Siriwardana further said the government is not prepared to fulfill this demand as it would burden the public.
At a meeting held today to address the demands presented by the trade unions, he emphasised that a salary increase this year is not possible.
He added that however, the 2025 budget will consider revising public service salaries based on the expert committee’s recommendations on salary disparities
According to the President’s Media Division (PMD), the Treasury Secretary made the remarks during a meeting held under the patronage of President Wickremesinghe at the President’s Office today.
Mahinda Siriwardana’s statement comes at a time when over 200 public sector trade unions have warned of engaging in a two-day ‘Sick Leave’ trade union action today (8) and tomorrow (9).
Government officials across several sectors, including postal workers, surveyors, agricultural regulators, Grama Niladhari officers, development officers, and prosperity officers, are participating in the strike launched over several demands, including a salary increase.