Cabinet nod for Basil to gazette Special GST Bill

The Cabinet of Ministers at its meeting on Monday gave the go ahead for Finance Minister Basil Rajapaksa to gazette the Special Goods and Services Tax (GST) Bill and submit it in Parliament for approval.

The move follows the Attorney General's clearance received for the Bill prepared by the Legal Draftsman. Separately, Cabinet also approved the gazetting of the Bill to amend the Value Added Tax Act No. 14 of 2002.

The Budget 2021 and 2022 proposed to replace the taxes and levies imposed under various statutory laws with a single tax that is managed online to increase the efficiency of tax collection on liquor, cigarettes, telecommunications, betting and gaming and vehicles.  

Separately, the Budget 2022 proposed to increase the value added tax on financial services and to exempt medical equipment, devices and chemicals donated to Government hospitals and the Ministry of Health under epidemic or public health situations from the value added tax.