• Ruling a boost for Govt. efforts to ramp up revenue
• Petitioners contended it was unreasonable to get public to pay higher taxes to overcome revenue crisis 
• However, three-member Bench stresses corruption and wastage of public finance must be addressed and violators dealt according to law irrespective of standing
• Says jurisdiction of court must be properly invoked in appropriate proceedings

The Supreme Court has ruled that the Inland Revenue (Amendment) Bill as a whole is not incon-sistent with the Constitution.

The Supreme Court ruling was conveyed by Speaker of Parliament Mahinda Yapa Abeywardena yesterday. The ruling is seen as a breakthrough for the Government's efforts to boost much-needed revenue from 8.2% of GDP in 2021 to 11.3% next year.

The Bill was challenged in the Supreme Court by concerned individuals and corporates especially over high income taxes proposed. Corporate tax to be almost doubled had drawn criticism especially from export companies. 

The three-member Supreme Court Bench comprising Judge Buwaneka Aluwihare PC, Judge Madu N.B. Fernando PC and Judge Janak De Silva said in view of the amendments to be made at the Committee Stage as indicated, some of the grounds on which the Bill and its provisions was sought to be impugned by the Petitioners was not proceeded with.

Nevertheless, the provisions regarding the increase in the tax rate, the minimum tax bracket and the elimination of several allowable deductions are at the forefront of the Petitioners› concerns.

“We hold that the Bill and its provisions are not inconsistent with the Constitution,” they said in their judgement arrived at after extensive consideration of submissions by all parties. 

The Bench also addressed another matter adverted to by some of the Petitioners. 

It was submitted that there has been corruption and mismanagement of public finances which has led to the present economic predicament. Accordingly, it was contended that it is unreasonable to get the public to pay higher taxes to overcome the situation.

“This court is exercising its constitutional jurisdiction over the Bill. These are not matters which we can take into consideration in this exercise. Nevertheless, we are mindful that the Court is the last bulwark to protect the Rule of Law and prevent any breach of public trust. 

“Corruption and wastage of public finance must be addressed and violators dealt according to law irrespective of standing. In order to do so, the jurisdiction of the Court must be properly invoked in the appropriate proceedings,” the Supreme Court Judges emphasised.

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