Nation Building Tax Bill challenged in SC

A public litigant lawyer activist filed a petition before the Supreme Court challenging the Bill titled “Nation Building Tax”.

Petitioner P. Liyanaarachchi in his petition filed through his lawyer Dharshana Weraduwage states that the Bill or any part thereof is inconsistent with the Constitution and seeks the Special Determination of the Court.

The Bill titled “Nation Building Tax ( Amendment)” was published in the supplement (issued on 19. 08. 2016) to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka and has been placed on the Order Paper of Parliament on 07th September, 2016.

The Petitioner states the Clauses 1, 2(2)(a)(iii), and 2(2)(b) of the Bill are in Vehement Infringement of Articles 12(1), 13(6), 27(1), (2)(a), 04, 03, of the Constitution and duly require the approval of the people at a Referendum by virtue of the provisions of Article 83.

The Telecom Services were already and continue to subject to among other taxes to a 25% Telecommunication Levy

He states the said Clauses are imposing Retrospective Tax Liability, on the Registered Tax payers as well as others who will fall liable with the reduction of the threshold turnover from Rs. 3.75 million to Rs. 3.0 million per quarter, with effect from 02nd of May, 2016 and with the said liability it will subject the default persons to many penal sanctions under and in terms of many Acts.

Clause 4(2) (b) of the said Bill is a vehement infringement Article 12(1), 27(1), (2)(a), 04, 03, of the Constitution and duly require the approval of the people at a Referendum by virtue of the provisions of Article 83, since the said Clause repeals the NBT exemption, which was applicable to the telecom services till the 02nd of May, 2016, he states. The Telecom Services were already and continue to subject to among other taxes to a 25% Telecommunication Levy, which was being imposed in terms of the provisions of the Telecommunication Levy Act, No. 21 of 2011 (as amended) hitherto, he asserts. Clause 5 of the said Bill is a vehement infringement Article 12(1), 27(1), (2)(a), 04, 03, of the Constitution and duly require the approval of the people at a Referendum by virtue of the provisions of Article 83, since the said Clauses attempts to ratify and/or revive many acts of nullity, of many state authorities, institutions, agents and/or many other persons, which are already subjected to Judicial Scrutiny and to Interim Relief, including many Fundamental Rights petitions and infringed the Public Trust, Separation of Powers and The Rule of Law, which are the holding pillars of the Constitution.