Supreme Court Determined Special Majority is Required For Amendment to New Inland Revenue Act
Srilanka’s major tax reform since independence from Britain in 1948, seeks to expand the tax net and seek to stamp out evasion as per the new Inland Revenue Act. This act was referred to the Supreme Court for determination .
Speaker Karu Jayasuriya has informed Parliament this morning (4) the determination of the Supreme Court.
The Supreme Court determination stated, that certain clauses in the new Inland Revenue Act are not in consistence with the constitution.
Therefore the court recommends that the Act needs to be passed with a special majority or else the clauses in questions need amending.
Finance Minister Mangala Samaraweera had recently indicated that the bill will seek to ensure that all citizens pay direct taxes instead indirect taxes.
The International Monetary Fund (IMF) had welcomed the new Inland Revenue Act, saying that it should boost tax revenues and improve tax administration.
Opposition parties including the Janatha Vimukthi Peramuna and the Joint Opposition have objected to the proposed bill, accusing the government of submitting it as per the needs of the IMF.