JO to complain to SC against price controls on 15 goods

By Chamodi Gunawardana

Soon after the Supreme Court (SC) verdict to block the Valued Added Tax (VAT) bill which planned to raise VAT up to 15%, the Joint Opposition expects to lodge another petition before the SC against the price controls imposed on 15 consumer goods in July.

MP Bandula Gunawardena told DailyFT that declaration of price controls on the 15 essential food commodities had been carried out by the Finance Minister Ravi Karunanayake in contravention of the provisions of   the Consumer Protection Act. 

Last July the Government announced price controls on sugar, dhal, potatoes, big onions, dry fish, milk powder, rice, red onions, wheat flour, dried chilies, green gram, chick peas, canned fish, chicken, dry sprats and pharmaceuticals.  

 “According to Article No 14 of the Act, the price controls should be announced after agreement with the Federation of mercantile Trade Unions. The Trade Minister should conduct discussions with them about the price controls and must get their opinion before the declaration,”

 Gunawardena claimed Karunanayake had breached the procedure and implemented the price controls without following such process, before announcing them. 

“Any particular consumer item will only require price control if it was out of stocks or rare to find in the market. However those goods which declared control prices don’t belong to that category. 

Gunawardena added the Joint Opposition expects to argue the validity of the price controls before the SC.

In addition, MP Udaya Gammanpila claimed the Joint Opposition would definitely raise its objection again against the next VAT bill if it has the same articles with increased VAT to 15%. 

He also charged Karunanayake has insulted the SC by saying he would present the bill again and raise the VAT as planned.

Meanwhile, the Joint Opposition said the SC had given the verdict to stop the VAT bill following a Determination petition filed by Joint Opposition MP Sisira Jayakody last July.

In his petition, he had argued that clauses 2 to 15 of the bill were in contravention of a number of Articles in the Constitution including Articles 3, 4, 12 (1), 12 (2), 72 to 75, 80, 148, 149, 150 and 152.

Speaking to the media MP Jayakody said the SC decision was a biggest victory of the Joint Opposition as well as the public.