Interim order by SC suspends VAT increase-SC, “Order will not impact Govt.’s revenue collection” – PM , “VAT to remain at 11% until legislation passes” – Ravi –
Posted on July 11th, 2016
Adaderana
July 11, 2016 02:11 pm
The petition was filed by an attorney representing three persons including National Freedom Front leader Wimal Weerawansa.
The petition has sought an interim order preventing the relevant authorities from ordering the public to pay the VAT. It has also argued that a Parliament approval is a must before the tax is increased.
The VAT was increased from 11% to 15% with effect from May 02, 2016. Several protests and hartals were also organised by the traders across the country including in Kiribathgoda, Kadawatha, Kelaniya, Anuradhapura, Badulla, Bandarawela and Katugastota over the past few days against the decision to increase VAT.
This interim order which was issued by the Supreme Court today (11) is not expected to have any adverse impact on the government’s revenue collection, Prime Minister Ranil Wickremesinghe says.
Issuing a statement, the Prime Minister asserted the revised rates of the Value Added Tax (VAT) and the Nation Building Tax (NBT) will be applicable with effect from 02 May 2016, since the VAT (Amendment) Bill has already been presented to the Parliament for the first reading on 08 July 2016.
The Supreme Court issued an interim order to suspend the Value Added Tax (VAT) increase this morning. Full statement: On 11 July 2016, the Supreme Court of the Democratic Socialist Republic of Sri Lanka has issued an interim order preventing the implementation of the recent revisions made to the Value Added Tax (VAT) and the Nation Building Tax (NBT) until the relevant legislation is passed by the Parliament.
This interim order is not expected to have any adverse impact on the government’s revenue collection. The VAT (Amendment) Bill has already been presented to the Parliament for the first reading on 08 July 2016, and the second reading is expected on 23 July 2016. The Unity government, which has a clear majority in the Parliament, expects the legislative process to be completed before the end of the month of July 2016. Thereafter, the revised rates will be applicable with effect from 02 May 2016.
The Value Added Tax (VAn at 11 % until until the relevant legislation is passed by the Parliament, Finance Minister Ravi Karunanayake said.
The observation wT) will remaias made at a press conference held in Colombo this afternoon (11).
The VAT will be increased to 15 % once the legislation is passed, according to Karunanayake.
The Supreme Court this morning issued an interim order to suspend the Value Added Tax (VAT) increase.
– See more at: http://adaderana.lk/news/36029/vat-to-remain-at-11-until-legislation-passes-ravi#sthash.c6GsnlhJ.dpuf- See more at: http://adaderana.lk/news.php?mode=beauti&nid=36026#sthash.Lzus5dFT.dpuf
July 11th, 2016 at 6:36 am
The nation is indebted to Wimal Weerawansa. This is not the first time he saved the nation and the people through the court.
In 2002 when the UNP government illegally imposed VAT (after removing GST) he obtained a court order to annul the illegal imposition of tax. Subsequently the UNP government passed the VAT law and imposed it. He also petitioned Supreme Court against the CFA and the merger of the north and the east.
Now the despotic dictatorship junta will arrest or harm the MP as usual.
All additional VAT illegally collected from the people must be returned to the people. Otherwise it is another VAT fraud.
Savings for the people is highly significant.