VAT Bill to House today

The controversial Value added Tax (amendment) Bill to taken up for debate in Parliament  today.

Member of the joint opposition (JO) in Parliament said they will move several amendments to the Bill to widen the scope of goods and services to be exempted from  the tax particularly those linked to medical services.

 The Supreme Court has ruled that the Bill is consistent with the Constitution.

In terms of the bill, VAT will be charged at 15 percent while the threshold of registration for VAT has been reduced from Rs. 3.75 million a quarter or Rs. 15 million a year to Rs. 3 million a quarter or Rs. 12 million a year.

The imposition of VAT applies among others to wholesale and retail trade where the threshold is more than Rs. 50 million a year or Rs. 12.5 million a quarter. The new rate will also be imposed on private health services other than diagnostic tests, dialysis, and OPD services excluding medical consultation, telecommunication services, tobacco products and powdered milk which contain added sugar or other sweetening matter.

Three other finance bills, namely the   Ports and Airports Development Levy (Amendment),   Nation Building Tax (Amendment) and Appropriation (Amendment) Bills will also be taken up today along with the VAT Bill.(CK)