The government is open to reconsidering the list of items to which Value-Added Tax (VAT) will be applied from January next year, State Minister of Finance Ranjith Siyambalapitiya said.

Addressing the Parliament on Thursday (Dec 07), State Minister Siyambalapitiya said the government is prepared to reassess the inclusion of 97 out of the 138 items.

He further said that the government was open to considering concerns raised by various parties concerning the proposed removal of VAT exemptions.

The State Minister revealed that the government expects to generate an income of Rs.378 billion through the revision of the list of goods exempt from VAT.

He made the remarks while addressing concerns raised on the decision to incorporate local food production into the VAT system.

The government has increased the VAT rate by 3 per cent to 18 per cent with effect from January 1, 2024.

It has also been proposed to remove VAT exemptions except from education, healthcare and certain essential food items.