Opposition and Samagi Jana Balawegeya MP Eran Wickramaratne, on Wednesday (8), presented two private member bills to amend both the Value Added Tax Act, No. 14 of 2002 (as amended) and the Special Commodity Levy Act, No. 48 of 2007. 

In a statement on Wednesday (8), Wickramaratne said he had presented the two private member bills as the Sri Lankan people were calling for more accountability and transparency with regard to public finances in the country. 

“I have brought these two amendments to ensure Parliamentary control on any changes to the Value Added Tax (VAT) and the Special Commodities Levy. These two amendments seek to facilitate parliamentary control over public finance as constitutionality required, and to prevent the executive (minister) from abusing statutory powers, including by (corruptly) granting benefits to a chosen few,” he said. 

Noting that although Sri Lanka’s Parliament was constitutionally supposed to have full control over public finances, he said there was currently tax legislation that actually violated this imperative provision, and instead gave discretion to the minister on: (i) tax exemptions, (ii) tax base, and (iii) tax rate. 

“The well-known sugar scam from 2020 is an example of the impacts of leaving the discretionary power with the minister. At a time when the country is facing a severe economic crisis and when there are calls from the people to have more transparency and accountability of our public finances, it is imperative that Parliament retains full control over public finance as mandated by Article 148 of the Constitution.

“My proposed amendments will bring the relevant portion of the VAT and SCL laws in conformity with the constitutional framework, as recognised by the Supreme Court in the Special GST Bill Determination,” said Wickramaratne.