brand logo

BASL challenges Special GST Bill in SC

03 Feb 2022

  • Notes impact on P’ment control of public finance and basic structure doctrine 
The Bar Association of Sri Lanka (BASL) has challenged the constitutionality of the newly gazetted Special Goods and Services Tax (SGST) in the Supreme Court (SC), the BASL said yesterday (2). “The BASL filed a petition challenging the constitutionality of the SGST Bill which is currently before the SC. The BASL decided to challenge the Bill given the wide implications of the Bill on the Parliament's full control of public finance and since the Bill veers from the basic structure of the Constitution,” the BASL noted in a press release issued in this regard yesterday. Thus, the BASL, whose current President is President’s Counsel (PC) Saliya Pieris, said that a number of clauses in the SGST Bill are inconsistent with several Articles of the Constitution, and require a special majority in the Parliament and approval by the people at a referendum. The SGST will impose a single tax on telecommunication, cigarettes, liquor, betting and gaming, and motor vehicle assemblers, manufacturers, importers, and service providers in lieu of the various taxes and levies imposed under different Acts. The gazette regarding the SGST was issued on 7 January 2022. The Bill empowers the Finance Minister to determine the rate of the tax, the basis of computing the tax, and exceptions to the tax by an order published in the gazette. Furthermore, a unit established within the Treasury, under the leadership of a named Deputy Secretary to the Treasury, will be responsible for the collection and accounting of the SGST. Two petitions were filed in the SC last week against the SGST, one by the Inland Revenue Commissioners’ Association and the other by the Samagi Jana Balawegeya (SJB). A number of protests were held this month against the Bill, led by the Excise Trade Union Collective. Last week, the Frontline Socialist Party too raised concerns about the Bill, warning that it could lead to corruption due to the lack of transparency and accountability that the SGST will bring about. Finance Minister Basil Rajapaksa presented the Bill in Parliament on 20 January, and it is due to be taken up for debate on 10 February 2022.


More News..