Protests to avoid
being caught up in tax net :
Traders must register with IRD
The ulterior motive behind protestors against VAT is to evade paying
taxes, a high ranking official at the Ministry of Finance told the
Sunday Observer.According to new VAT Regulations traders operating
without tax registration will have to register with the Inland Revenue
Department(IRD), he said adding that the protests were a move by traders
to avoid being caught into the tax assessment net.
The Cabinet of Ministers will meet on Tuesday (July 12) to decide on
the prices of essential goods-and VAT will not be added to these items,
said the Minister of Industry and Commerce Rishad Bathiudeen on July 8
in Parliament. “Though the VAT component is applied to certain
commodities, no VAT component is applied for essential food items” said
Minister Bathiudeen, addressing the House. “All amendments will have to
be brought in at the committee stage, the bill has already been through
attorney General’s department,” Finance ministry secretary D. H. S.
Samarathunga told Sunday Observer.
The president and Prime Minister have both instructed that a separate
rate formulae be used when charging VAT in health services, he said. The
bill to give legal footing to the VAT amendments imposed through 2016
budget. However the promised tax relief for health services has not yet
been in cooperated to the bill.The Value added Tax amendment is
scheduled to be taken up on July 20, leader of the House and Minister
Lakshman Kiriella also said. However, if petitions are filed against the
VAT increase, Parliament may have to postpone it. Deputy Speaker
Thilanga Sumithpala also said that the Bill which is scheduled for
hearing on the 20th of this month will need to be postponed if
individuals go to courts over it.
Bathiudeen said the price of essential commodities has differed
significantly from one district to another.
This was happening during the past due to transport costs incurred
and the number of middle men involved in the supply chain, however, now
consumers are of the view that this occurred recently due to an increase
of the VAT component.
He added that these concerns should be addressed positively to
maintain the Cost of Living in the country while ensuring delivery of
quality goods and lowest price to the end consumer |
