Sri Lanka in move to clear VAT confusion after court shock
ECONOMYNEXT – Sri Lanka is likely to move an amendment to a value added tax bill now in parliament to accommodate a Supreme Court decision to suspend the tax, a senior Treasury official said.
Under the planned change which may be moved during the’ committee stage’, the hike in value to 15 percent the charging of tax from exempt items will not take place from the date of the court order to the data of the final passage of the tax.
Sri Lanka’s government belatedly presented a value added tax amendment to parliament last week after starting to collect taxes from the people from May 02 without parliamentary approval.
In Sri Lanka governments have had a habit of charging tax first and debating them in parliament later.
An opposition parliamentarian went to court saying the tax was illegal.
Anyone who collects a higher 15 percent tax from an earlier 11 percent or 15 percent tax from items that were not taxed before May 02 would now be in contempt of court. (Colombo/July11/2016)