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VAT increase will apply after Parliament approval: Prime Minister

July 11, 2016 (LBO) – The Supreme Court’s interim order issued today suspending VAT increase is not expected to have any adverse impact on the government’s revenue collection, Prime Minister said.
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Releasing a statement Prime Minister Ranil Wickramasinghe said the VAT (Amendment) Bill has already been presented to the Parliament for the first reading on 08 July 2016, and the second reading is expected on 23 July 2016.
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“The Unity government, which has a clear majority in the Parliament, expects the legislative process to be completed before the end of the month of July 2016,” Wickramasinghe said. “Thereafter, the revised rates will be applicable with effect from 02 May 2016.
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” The Supreme Court today issued an interim order preventing the implementation of the recent revisions made to the Value Added Tax (VAT) and the Nation Building Tax (NBT) until the relevant legislation is passed by the Parliament.
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