The Inland Revenue Department (IRD) announced that locally produced liquid milk and yogurt are now exempted from Value Added Tax (VAT), following the enactment of the VAT (Amendment) Bill.

According to the Department, the VAT exemption came into effect on 11 April, the day the bill received parliamentary assent from Speaker Jagath Wickramaratne. The bill was passed in Parliament on 9 April.

It's worth noting that to qualify for the exemption, liquid milk products must contain at least 50% fresh milk.

The VAT was also removed on naphtha supplied by the Ceylon Petroleum Corporation (CPC) to the Ceylon Electricity Board (CEB) for electricity generation, it added.