VAT (Amendment), Inland Revenue (Amendment) Bills passed in Parliament

The third reading of the Value-Added Tax (Amendment) and Inland Revenue (Amendment) Bills were passed in the Parliament yesterday with a majority vote.

A division was called for the third reading of the Value Added Tax (Amendment) Bill by the Opposition to which 82 votes were cast in favour of the Bill and 41 votes against.

A division was also called for the third reading of the Inland Revenue (Amendment) Bill by the Opposition to which 79 MPs voted in favour whilst 36 voted against.

Accordingly, the two Bills were passed in Parliament with a majority and with amendments.

The VAT Amendment Bill was presented to Parliament by Prime Minister and Public Administration, Home Affairs, Provincial Councils, and Local Government Minister Dinesh Gunawardena.

The Bill was challenged in the Supreme Court in terms of Article 121(1) of the Constitution. The Supreme Court determined that some clauses of the proposed Bill is inconsistent with the Constitution, but the Bill as a whole is not inconsistent with Constitution and proposed certain amendments.