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People paid VAT for exempted services: former CJ

14 July 2016 08:27 pm - 11     - {{hitsCtrl.values.hits}}

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Imposing VAT increment on services, which were exempt, was illegal and people had already paid the extra money, former Chief Justice Sarath N. Silva said yesterday

People have already paid 15 per cent as VAT in the healthcare sector, which is a VAT exempted service, he said.

“If a Bill was presented in Parliament to implement VAT, it is in effect from the date it was presented in Parliament. Normally, a Parliament decision is implemented after it is passed in Parliament. Parliament, however, has the power to implement such decisions with retrospective effect,” he said.

“This decision to increase VAT was made to meet the requirements of the IMF. However, the Government has only received US $ 220 million thus far,” the former Chief Justice said.

The Value Added Tax (VAT) was increased from 11 to 15 percent hurriedly due to the requirement of the International Monetary Fund (IMF) to obtain the first tranche of the US $1.5 billion loan, Silva claimed.

The VAT was increased to the previous 11 to 15 on May 2 this year.

“The Supreme Court interim order suspending the implementation of revisions made to the VAT and the Nation Building Tax (NBT) is correct,” he said.

“Taxes cannot be imposed without the approval of Parliament but it can give its power to some other person or a party, to take decisions on tax,” he said. (Chaturanga Pradeep and Indika Sri Aravinda)

Video by Indika Sri Aravinda


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  Comments - 11

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  • Jeff Thursday, 14 July 2016 08:42 PM

    You are a shame to this country and the legal society. You came to CJ post from back door and you the only one CJ in the world publicly proclaimed you gave wrong verdict on MR's case. Shame! Shame!

    raj Thursday, 14 July 2016 09:07 PM

    see who is talking about "illegal"

    Calistus Jayatilleke Friday, 15 July 2016 05:37 AM

    What an expert on illegality.

    dulan Friday, 15 July 2016 05:53 AM

    You freed MR from a Rs.80m fraud and later apologized to the nation saying you did a favour. Why does such people get space

    Ranjit Friday, 15 July 2016 06:20 AM

    Welcome back! We don't need your two cents worth.So lie low. .

    Sincere Friday, 15 July 2016 11:09 AM

    He has completely lost his credibility.

    openmind Friday, 15 July 2016 11:23 AM

    not worth wasting time to listen idiotic talks. phoo...

    Ram Friday, 15 July 2016 12:04 PM

    Oh! You are back again,The trust is lost and no one care for what you say

    jolly bird Friday, 15 July 2016 03:10 PM

    THE ONE AND THE ONLY CHIEF JUSTICE WHO WHO MADE THE POSITION CHEAT AND THEN APOLOGISED. via DM Android App

    REALPATRIAT Friday, 15 July 2016 07:50 PM

    A PECULIAR PERSON WHO DOESNT HAVE A BACKBONE. via DM Android App

    Farook Friday, 15 July 2016 08:55 PM

    This man is talking bull shit, giving wrong verdicts during his working period what the hell is he talking now?


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