Saturday Dec 14, 2024
Saturday Dec 14, 2024
Monday, 10 January 2022 00:23 - - {{hitsCtrl.values.hits}}
By Chandani Kirinde
The Government has gazetted the new Special Goods and Services Tax Bill aimed at simplifying the existing tax structure by avoiding the existing multiple tax regime and prompting self-compliance in the payment of taxes.
The Bill ordered to be published in the Gazette by Finance Minister Basil Rajapaksa provides for a levy to be known as the ‘Special Goods and Services Tax’ to be the new composite tax payable on a number of specified goods and services.
These include liquor, cigarettes and vehicles (inclusive of parts for assembling of vehicles), telecommunications services, betting and gaming etc.
The rate of tax applicable, either ad valorem or specific, to the respective specified goods or services will be made by an Order of the Finance Minister and will come into immediate effect with parliamentary approval required within three months after such an order comes into effect.
The Minister is empowered to exempt certain goods or services from the Special GST.
A Deputy Secretary to the Treasury (Designated officer) will be assigned with the administration and collection of the Special GST under a special unit to be set up by the Secretary to the Treasury.
The Secretary to the Treasury will assign to the unit number of officers attached to the Ministry of Finance or any Department coming within the purview of the Ministry of Finance as may be deemed necessary.
Under the provisions of the Bill, the Special GST payable by a taxable person will be paid directly by the person, by way of an electronic fund transfer to an account opened and maintained in the name of the Designated Officer for the purposes of this Act. Such payment will be credited to the Consolidated Fund.
The Bill got Cabinet approval last week and will be presented to Parliament later this month.
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Bill to increase VAT rate on financial services gazetted
Amendment to the Value Added Tax Act No. 14 of 2002 to increase the VAT rate from 15% to 18% per cent on supply of financial services on financial institutions with effect from 1 January has been published in a Gazette.
The Bill exempts certain goods and services from VAT in order to give effect to budget proposals of 2022.
The exemptions apply to medical equipment, machinery, apparatus, accessories and parts thereof, hospital furniture, drugs and chemicals donated to a Government hospital or the Ministry of Health for the provision of health services to address any pandemic or public health emergency, approved by the Finance Minister on the recommendation of the Secretary to the Ministry of Health.
