VAT threshold lowered to Rs 60 mn per year from Rs 80 mn

The Cabinet of Ministers has granted approval to reduce the Value-Added Tax (VAT) threshold. In line with this decision taken on Monday (11), the VAT registration threshold would be brought down from Rs. 80 million per annum to Rs. 60 million per annum with effect from January 01, 2024.

The Third Reading of the VAT (Amendment) Bill was passed with amendments in Parliament on Monday by a majority of 45 votes with 100 MPs voting for the Bill, and 55 voting against it.