Written by Keshala Dias
25 Oct, 2016 | 10:22 pm
The Supreme Court informed the Speaker of Parliament on Tuesday, October 25 that the VAT Amendment Bill is not in contravention of the constitution.
MPs Bandula Gunawardena, Udaya Gammanpila and Sisira Jayakody had earlier requested court to make null the bill, citing that it was in violation of the constitution.
Deputy Speaker Thilanga Sumathipala announced the Supreme Court determination to Parliament. In a press release today, the Ministry of Finance says that the VAT Amendment Bill will be debated in Parliament on Wednesday, October, 26 and will thereafter be passed.
The Finance Minister says that all hidden charges in the previous VAT system have been removed. VAT was introduced as a 10% levy on goods and services in the year 2002.
The statement goes on to say that VAT was increased to 20% by 2006 and for the first time in 2013, VAT was imposed on wholesale and retail trade.
It adds that under the previous VAT system, not only was it subject to the revenue generated through the sale of goods, but it was also subject to the entire capital cost exempting to the 25% relief that was granted.
It goes on to says, the new VAT Amendment Bill will ensure that a tax boundary and percentage would be evenly divided within the trade community, in a just manner.
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