Sri Lanka, Nov. 12 -- President Anura Kumara Dissanayake has announced a structural reform in how Value Added Tax (VAT) is calculated on cinema ticket sales to establish a fairer and more equitable tax framework for Sri Lanka's film industry.

Delivering the 2027 Budget speech, the President stated that VAT liability for film producers, distributors, the National Film Corporation, and cinema hall operators will now be determined based on the specific share of ticket revenue received or allocated to each stakeholder at each stage of the distribution and exhibition process.

The proposed revision moves away from the previous method of taxing the full gross value of a cinema ticket, ensuring that tax obligations are fairly proportioned to th...