VAT exemptions for locally sourced milk, yogurt and naphtha

Friday, 18 April 2025 00:12 - - {{hitsCtrl.values.hits}}

The Inland Revenue Department (IRD) yesterday confirmed that locally produced liquid milk and yoghurt are now exempted from Value Added Tax (VAT).

The VAT exemption came into effect from 11 April, following the official certification of the Value Added Tax (Amendment) Act No. 04 of 2022.

The exemption applies only to products made with at least 50% locally sourced fresh milk.

In addition, VAT has also been removed from naphtha supplied by the Ceylon Petroleum Corporation (CPC) to the Ceylon Electricity Board (CEB) for power generation.

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