Supreme Court issues interim order suspending increased VAT, NBT

Supreme Court issues interim order suspending increased VAT, NBT

Supreme Court issues interim order suspending increased VAT, NBT

Written by Staff Writer

11 Jul, 2016 | 6:51 pm

The Supreme Court issued an interim order, suspending the increased VAT and Nation Building Taxes.The order was issued when fundamental rights petitions filed by a group including MP Wimal Weerawansa, were taken up at the apex court on Monday. The petitions were considered before a three member bench comprising of Chief Justice K. Sri Pavan and Justices Buwaneka Aluwihare and Prasanna Jayawardane.

The petitioners sought an interim order from the Supreme Court, preventing the implementation of the VAT and NBT taxes as increased via a statement issued by the Commissioner of Inland Revenue, effective on May 2, this year.

Considering submissions made today, the court noted that the constitution and the law of the country had not been considered when imposing the increased VAT and NBT taxes.

The bench reiterated that, be it good governance or any other form of governance, a government must act within the four corners of the law when governing a country.

Furthermore, the bench informed that the interim order preventing the imposition of the increased VAT and NBT taxes, would be operative until the final determination of the petitions or until parliament adopts a bill legitimising the increased taxes.

Leader of the National Freedom Front, MP Wimal Weerawansa stated that the constitution and the relevant act outlines procedures for increasing taxes.

He added that the government faction was unable to mount a powerful opposing argument, as such the Supreme Court, “like separating milk from water,” noted that there was a truth evident in this matter and they have given a fair decision. The petitions will be taken up for argument on December 6.

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