SC concludes hearing into VAT bill: Determination to be communicated to Speaker

The Supreme Court today concluded the arguments put forward in support and against proposed Value Added Tax (Amendment) Bill which was placed on the order paper of Parliament recently.

Accordingly, all parties relating to the petitions were directed to submit their written submissions regarding these Special Determination petitions.

Later on, the Supreme Court’s determination over the proposed VAT bill is to be communicated to the Speaker Supreme Court three-judge-bench comprised Chief Justice Jayantha Jayasuriya, Justice S. Thurairaja and Justice Arjuna Obeysekera. 

Two petitioners including business M. Victor filed these petitions naming the Attorney General as respondent. The petitioners are seeking a declaration that the bill in whole or in part thereby requires the approval by people at a referendum and requires a two-third majority in Parliament.

The bill was presented to the Parliament by the Prime Minister and Minister of Public Administration, Home Affairs, Provincial Councils and Local Government for its First Reading.

Meanwhile, Senior Counsel Dharshana Weraduwage appearing for a petitioner raised preliminary objections against the bill arguing that there is no valid Cabinet decision as mandated by Article 152 of the 
Constitution to present the said Bill to the Parliament since, no member of parliament is so far appointed to the Cabinet Ministerial Portfolio of the Minister of Finance, Economic Stabilization and National Policies.

The petitioner maintained that the provisions of the impugned Bill in whole or in part, is beyond the competency of the legislature, not for a public purpose and said it violates the Fundamental Rights guaranteed under the Constitution.

President's Counsel Dr. Kanagiswaran and Senior Counsel Dharshana Weraduwage appeared for the petitioners.

Deputy Solicitor General Nirmalan Wigneswaran appeared for the Attorney General. (Lakmal Sooriyagoda)