VAT bill requires a referendum: Gammanpila says

If the Supreme Court determines that the Value Added Tax (VAT) Amendment Bill, tabled last week, contains clauses violating article three of the Constitution, the bill can only be passed following a referendum, the Pivithuru Hela Urumaya (PHU) said yesterday.

Speaking to media PHU Leader Udaya Gammanpila said article no 3 in the Constitution which protects ‘the Sovereignty of the People,’ is being violated by the recent VAT Amendment bill.

“Article no 3 of the Constitution says that sovereignty is in the people and is inalienable. Sovereignty includes the powers of Government, fundamental rights and the franchise. The recent VAT bill has breached that article and it requires a referendum to pass the bill in Parliament,” he claimed.   

Gammanpila also said the Government should release private health services from VAT, highlighting that all people should be treated equally under the law.

“According to the Constitution all kinds of people including patient should be treated equally and the VAT concessions should not limited for a specific category of patients. If the Government is only concerned about kidney patients it can be challenged in courts,” he said.

The parliamentarian also alleged that the government is attempting to retain money “illegally” collected as VAT from 2 May to 11 July by applying retrospective low via the recent VAT amendment bill; he stated that VAT collected during the period should be reimbursed. 

A day after the presentation of the VAT Amendment Bill, Gammanpila lodged a petition in Supreme Court challenging the bill. (CG)