SJB GOES TO SC AGAINST NEW TAX BILL

● Madduma Bandara is seeking a declaration that the bill requires the approval by the people at a Referendum in addition to the 2/3 approval of the Parliament

Samagi Jana Balawegaya (SJB) yesterday filed a Special Determination petition in the Supreme Court challenging the constitutionality of the bill titled “Special Goods and Services Tax”. Through this petition SJB General

Secretary Ranjith Madduma Bandara is seeking a declaration that the bill requires the approval by the people at a Referendum in addition to the 2/3 approval of the Parliament. The bill titled “Special Goods and Services Tax” was placed on the Order Paper of Parliament on 20th of January 2022.

The petitioner states that Clause 2(3) empowers the subject Minister from time to time specify by Order published in the Gazette, the rate of tax applicable to the respective specified goods or services. Madduma Bandara insists that this would allow the Minister by an Order to determine the rate of tax applicable or the basis of the calculation of the Special Goods and Services Tax in relation to the specified goods and services without the approval of Parliament.

The petitioner further states that the clauses in the bill grant an arbitrary power to the Minister to impose the tax and to determine rate of tax applicable or the basis of calculation of the tax in relation to the respective specified goods or services, without the approval of the Cabinet of Ministers.

The petitioner also states that the several clauses have granted arbitrary power to the Minister to impose, repeal, augment or reduce the taxes without being approved by the Parliament for a period of three months.

Therefore, the petitioner states that the Clauses of the Bill violate Article 148 and 152 of the Constitution.