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Economic Analysts refer to the positive impact on the national economy

ITN News Editor
By ITN News Editor November 28, 2019 19:17

Economic Analysts refer to the positive impact on the national economy

Economic Analysts point out that the positive impact on the national economy, from the VAT reduction is greater than the revenue loss. Senior Lecturer of the Department of Economics of the Ruhunu University NanadsiriKihimbiyahetti also expressed views on this matter.
Dr. Kihimbiyahetti said the previous VAT of 15 percent was unnecessary. With new reduced VAT, the government will be at a revenue loss of around 200-250 Billion rupees. But this can be recovered by meticulous financial management. NandasiriKihimbiyahetti opined that unnecessary expenditures of the government should also be written off. Dr. Kihimbiyahetti added that reduced rates will serve as an incentive to the businesses.
The consumer demand will increase as the prices of the goods reduce. Dr. Kihimbiyahetti highlighted that the expansion of the national economy that can be expected through the VAT reduction is immense. He said this decision of the government will also attract foreign investors while giving out a positive impression of the economy.

ITN News Editor
By ITN News Editor November 28, 2019 19:17