📊 NPP's Economic Relief Promises: Are They Viable?

⭕ VAT Removal: AKD vows to remove VAT on food, healthcare, and school supplies if elected.

⭕ Electricity Bill Reduction: Promises a one-third reduction in electricity bills.

⭕ VAT on Books & Medicine + Services: Books and medicine were only taxed after January 2024. They were VAT-exempt since the inception of the VAT Act, so the impact of removing VAT on those items may be limited—a viable proposal.

⭕ Electricity Bill Reduction: The government already cut prices by ~25%-30%, citing a CEB surplus. However, this move is largely political and may be revised in October. The CEB's document to PUCSL doesn't fully justify the tariff reduction. Unless there is excessive rainfall for the rest of the year, further reductions are unlikely without cash injections from the Treasury.
https://t.co/WIuCjHB8O9

⭕ Removing VAT on Food: Essential food item imports like potatoes, onions, wheat flour, and milk powder make up a significant portion of Sri Lanka's imports. Considering the large volume, removing VAT from these items will significantly reduce government revenue.