The cabinet has decided to reduce the Value Added Tax (VAT) from 15 per cent to 8 per cent with effect from December 1.
Cabinet also decided to remove Nation Building Tax (NBT) on household goods, Debit Tax, PAYE Tax and Withholding Tax on Interest.
All taxes imposed on the remittances made by expat workers will also be removed while places of religious worship will be exempt from all taxes.
Meanwhile, the telecommunications levy has been reduced by 25%.
Cabinet decisions also include:
Construction Industry to be placed on 14% income tax instead of 28%
IT & enabling services to be free from all taxes
Tax free threshold for turnover for Vat is to be raised from Rs 1 million per month to Rs 25 million per month.
Vat on banking, financial services and insurance to be maintained at 15% and NBT removed
Farm income from agriculture, fishing and livestock to be made income tax free
(Daily Mirror)