Samagi Jana Balawegaya (SJB) today filed a Special Determination petition in the Supreme Court challenging the constitutionality of the bill titled “Special Goods and Services Tax”.
Through this petition SJB General Secretary Ranjith Madduma Bandara is seeking a declaration that the bill requires the approval by the people at a Referendum in addition to the approval by Parliament with a 2/3 majority.
The bill titled “Special Goods and Services Tax” was placed on the Order Paper of Parliament on 20th of January 2022.
The petitioner states that Clause 2(3) empowers the subject Minister from time to time specify by Order published in the Gazette, the rate of tax applicable to the respective specified goods or services. Madduma Bandara insists that this would allow the Minister by an Order to determine the rate of tax applicable or the basis of the calculation of the Special Goods and Services Tax in relation to the specified goods and services without the approval of Parliament.
The petitioner further states that the clauses in the bill grant an arbitrary power to the Minister to impose taxes and to determine the rate of tax applicable or the basis of calculation of the tax in relation to the respective specified goods or services, without the approval of the Cabinet of Ministers.
The petitioner also states that the several clauses have granted arbitrary power to the Minister to impose, repeal, augment or reduce the taxes without being approved by Parliament for a period of three months.
Therefore, the petitioner states that the Clauses of the Bill violateArticle 148 and 152 of the Constitution.
The petitioner further states that the Clauses which propose to grant arbitrary power on the Minister with regard to the imposition, repeal, reduce the taxes without checks and balances and which would empower the Minister to arbitrarily impose taxes for collateral purposes on a selected section of citizens violates Article 3 and 4 of the Constitution also violates the doctrine of Public Trust.
