Govt. withdraws Special GST Bill after SC determination

The Government on Tuesday withdrew the Special Goods and Services Tax (GST) Bill after the Supreme Court determined the majority of the clauses in the Bill are inconsistent with the Constitution.

Chief Government Whip Johnston Fernando informed the House the Government is withdrawing the Bill which had been placed on the Order Paper of Parliament.

The constitutionality of the Bill, aimed at simplifying the country’s existing tax structure, was challenged before the SC in terms of Article 121 (1) of the Constitution.

The court stated that Parliament, which exercises full control of public finance, would deprive itself of the constitutional responsibility to ensure tax revenue is utilised only for public purposes and for other purposes approved by Parliament, if this Bill is enacted.