Supreme Court suppresses VAT temporarily

Supreme Court suppresses VAT temporarily

The increase of 4% withheld.

The new VAT component and the Nation Building Tax was imposed by the government from the 02nd of May. The VAT was increased from 11% to 15%.The Judges of the Supreme Court had ordered the government today the 11th instant to suppress these two tax components. That is after taking into careful consideration five separate petitions that

were filed against these increases by the Member of Parliament Wimal Weerawansa and others.

Accordingly until these five petitions are carefully studied the increase of the VAT and the NGT would have to be suspended. According to the three bench Supreme Court judge bench what is stated in the petition is correct. The Chief Justice and the other three judges of the bench had ordered the notice issued by the Commissioner General of Inland Revenue to be withdrawn forthwith. This was the decision of the judges in the three bench Supreme Court Judge panel comprising of the Chief Justice K Sripawan,Buwaneka Aluvihare,Prasanna Saliya Jayawardena had added.

Hence the VAT and the NBT components would remain as before the increase made on 02nd of May.