GL Peiris Talk About VAT Through his Hat

The Value Added Tax (VAT) was increased on selected items and services from 11% to 15%  as from  May 2, 2016. There is public cry over this issue. Every other day, traders, public ,  social minded people and others staged demonstrations. National Freedom front went to the Supreme Court and obtained an interim injunction. Supreme court made it clear that it should be brought before Parliament and passed.Followed by the Supreme court interim injunction different views are being expressed by different people.

Prime Minister said,  that it won’t affect revenue collection in any way and it will be passed in parliament soon. In the meantime, former Minister G.L. Peiris,  while speaking at a press conference held in Colombo today (12) said  that “If the VAT remains at 11 %, until the relevant legislation is passed by the Parliament, the additionally obtained tax money should be reimbursed”.

Meanwhile, MP Bandula Gunawardena while speaking at the press conference accused the Finance Minister of attempting to go beyond the powers of the Parliament. “The VAT was increased without an approval from the Parliament,” he added.