The National Book Traders Association has raised concerns over a sharp rise in book prices, attributing a 20% increase to the recent imposition of Value Added Tax (VAT) and Nation Building Tax (NBT) on printed books.
Speaking at the Association’s annual anniversary event, Samantha Indeewara, President of the Sri Lanka Book Publishers’ Association, highlighted the financial strain this policy is placing on readers and the publishing industry.
“The price of a book has increased by 20%, or about one-fifth. The officials are confusing the issue. Previously, there was a 15% VAT on items like stationery, but no VAT on printed books. That’s what directly changed — from 0% to 18%. Stationery previously had only 3% VAT. They are mixing up these two categories,” Indeewara explained.
He further stated that a letter from the Presidential Secretariat, received about a month ago, acknowledged the matter and indicated that an analysis was underway, with a formal response expected in due course.
Gamini Moragoda, Patron of the National Book Traders Association, also voiced his concerns to the media:
“A VAT that is not levied in any other country in the world is being imposed on our books. The introduction of this tax, which had not existed in Sri Lanka for 75 years, starting in January 2024, is destroying the book industry. If this continues, a child will not be able to afford a book in the future.”
Industry stakeholders have urged authorities to reconsider the taxation policy, warning that continued enforcement could severely impact literacy, education, and the future of Sri Lanka’s publishing sector.
