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Sri Lanka to remove VAT from hospital bills

Sri Lanka will remove value added tax from hospital bills from next week, Finance Minister Mangala Samaraweera said in the wake of calls by President Maithripala Sirisena also to lift the tax.

Sri Lanka slammed a 15 value added tax on hospital bills while threatening price controls on private hospital bills. The administration has also depreciated the rupee in a bid to boost exports by improving ‘competitiveness’ which involves the destruction of real wages of workers.

Every person who goes to a private hospital, will save resources from the state hospital system.

Sri Lanka provides education and healthcare free, and also uses both services as an excuse to justify the existence of the state and the taxation system.

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