VAT changes in Jan. deviates from legislative process, says tax expert
View(s):The Sri Lankan Government is not enacting new laws and thus deviating from the normal legislative process in implementing the Value Added Tax (VAT) changes in 2013 Budget with effect from the January 1, 2013, a tax expert said.
Speaking at the Sunday Times Business Club meeting on budget issues in Colombo on Thursday, tax expert N.R. Gajendran, founder and senior partner Gajma and Co. noted that the implementation of VAT on wholesale and retail businesses should be legalised by presenting and passing an amendment to the VAT Act No14 of 2002 in parliament.
He pointed out that the Inland Revenue Department (IRD) cannot implement VAT changes made in the budget by publishing a newspaper advertisement with effect from the 1st of January 2013 without making the amendments legal.
He revealed that the VAT amendment bill is to be presented in parliament in March next year and the implementation of 2013 budget proposals on VAT will become effective only after that.
“It is unfair to impose VAT on wholesale and retail businesses before enacting legislation,” he said.
The IRD ran an advertisement on Thursday relating to liable limit for VAT registration, VAT on wholesale and retail businesses, and exemptions which it say will take effect from January 2013. Etisalat is a main sponsor of the club with Taj Samudra as the host hotel.
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