[File Photo]

The stringent measures announced in the 2023–24 National Budget, including the new Value Added Tax, comes into effect tomorrow.

From tomorrow, there will only be two rates of VAT, which are zero percent and 15 percent.

Minister for Finance, Professor Biman Prasad says they fully understand the expectations of the people.

“Now some people are saying that 15 percent will raise some prices; it will be by six percent. With the revenue that we are getting, we are making sure that it is ploughed back into areas of social welfare, agriculture, and health.”

Finance Minister, Professor Biman Prasad.

Professor Prasad says the zero VAT rating on 21 items will continue, with the addition of prescribed medicine on the list.

The items on zero VAT will include flour, rice, sugar, canned fish, cooking oil, potatoes, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene, cooking gas, and prescribed medicines.