New GST Bill to be drafted

Thursday, 25 March 2021 00:20 - - {{hitsCtrl.values.hits}}

Cabinet consent given to draw up new tax to cover alcohol, cigarettes,vehicles,telecommunications and betting

Cabinet has given consent to draft a new Goods and Services Tax (GST), which is targeted at simplifying taxes on alcohol, cigarettes, vehicles, telecommunications and betting.

The new GST was proposed in Budget 2021 and is seen as having potential to contribute significantly to public revenue.

The Cabinet paper was presented by Prime Minister Mahinda Rajapaksa in his capacity as Finance Minister seeking approval to instruct the legal draftsman to prepare the GST Bill.

Responding to questions on why the Government was reintroducing a GST after having done away with a similar facility and replaced it with the Value Added Tax (VAT) in 2002, Cabinet Spokesman Keheliya Rambukwella said the effectiveness of GST would be considered once the legislation was completed.

“GST will be implemented only on selected items and we will reconsider its impact once the legislation is presented in detail of the Cabinet of Ministers,” he said.

Treasury Secretary S.R. Attygalle last month said the Finance Ministry was working to have the GST ready for implementation from the new tax year.