The Parliamentary Committee on Public Finance has refused to grant mandate for the order in which reduction of VAT to 8 percent was introduced by the new government.
"The Committee refused to grant mandate for the Order Under Section 2A of the Value Added Tax Act, No. 14 of 2002, as amended by Act, No. 06 of 2005, to reduce the Value Added Tax to 8%. Accordingly, the committee also called for a detailed financial justification with regards to the aforesaid to be presented at the next committee meeting,” a statement from the Parliament media unit said.
In addition, the Committee also refused to grant mandate for the Order Under Section 3 of Excise (SPECIAL PROVISIONS) Act, No.13 of 1989 on products of tobacco or of tobacco substitutes.
The Committee thus directed the respective officials of the Ministry of Finance to consult the National Authority on Tobacco and Alcohol requesting the officials of the authority to be present at the next committee meeting.
The committee further decided to call for observation of the Central Bank of Sri Lanka (CBSL) regarding the Forensic Audit report on the issue on Treasury Bonds at the committee meeting held today at the Parliament Complex.
The importance of CBSL submitting their own observations at the next committee meeting was highlighted by committee chair MP M.A. Sumanthiran.
Accordingly, committee officials were directed to call for the participation of officials from the CBSL in order to submit their observations on the report at the next committee meeting scheduled for February 18, 2020. (Yohan Perera and Ajith Siriwardana)