Print gets lifeline as Budget 2027 exempts books from VAT, scraps PAL on newsprint

Saturday, 14 November 2026 00:49 - - {{hitsCtrl.values.hits}}

Textbooks, dictionaries, children’s colouring books and exercise books freed from VAT
Reverses VAT imposed on printed books in Jan. 2024
10% PAL on newsprint removed from 1 Jan.

President and Finance Minister Anura Kumara Dissanayake has proposed exempting printed books and exercise books from Value Added Tax (VAT), and removing the 10% Ports and Airports Development Levy (PAL) on newsprint imports from 1 January, 2027. The measures bring relief to students, readers and newspaper publishers.

Presenting the 2027 Budget on Thursday, President Dissanayake proposed the VAT exemption for textbooks, dictionaries, encyclopaedias, children’s drawing and colouring books, educational publications and other printed books, as well as exercise books.

“Printed books and other printed materials became subject to Value Added Tax (VAT) effective from January 2024, while exercise books had been subject to VAT even before that date,” he said.

The President said the exemption recognised the importance of education and the need to keep essential educational materials affordable, with the aim of promoting access to education, knowledge and reading.

The PAL currently charged on the importation of newsprint classified under specified Harmonized System (HS) codes will be removed, he said. HS codes are the international classification used to identify traded goods.

President Dissanayake also proposed a 25% cut in the existing CESS rates on 800 selected HS code lines, under the Government’s program of phased reduction of import tariffs. CESS is a levy on imports. The cut aims to simplify the import tax structure, reduce trade-related costs and enhance the competitiveness of the economy, he said.