The Supreme Court of Sri Lanka has stated that it cannot give a decision on the Value Added Tax (Amendment) Bill as it was not presented following due procedure, Speaker Karu Jayasuriya informed Parliament today.
The Speaker had then summoned an emergency party leaders meeting to discuss the matter.
He stated that the court has determined that the proceedings have been deemed null due to the failure to follow the provisions contained in the constitution, which are imperative.
The court states that no determination would be made regarding the VAT bill at this stage as due process has not been followed before the bill was introduced in Parliament.
According the Department of Inland Revenue says that the VAT will remain at the previous 11 per cent.
The Government had issued a notice informing taxpayers that the rate of VAT had risen from 11 percent to 15 percent effective from May 2, 2016.
However, following a petition filed challenging the decision, the Supreme Court intervened on the basis that Parliament had not consented to the tax policy change.
