The controversial Value Added Tax Amendment Bill was passed in Parliament today (11), with Finance Minister Ranjith Siyambalapitiya emphasizing the necessity to reach the state revenue target of 37,800 crores. The amendment includes provisions to impose an 18% VAT on ninety-seven goods from January onwards, previously exempted from VAT.
The bill secured 100 votes in favor and faced 55 votes against it, ultimately passing with a majority. However, the parliamentary debate leading up to the vote was marked by intense opposition protests, with claims that the bill needed further discussion.
State Finance Minister Shehan Semasinghe defended the swift voting, stating that the opposition had been given a full day for the debate, but disruptions occurred, leading to a decision to proceed with the vote. Semasinghe argued that the opposition’s intent was to create uncertainty internationally regarding economic recovery and debt restructuring.
In his address, Semasinghe acknowledged the economic challenges but emphasized the government’s commitment to widening the tax net and consolidating taxes. The bill’s passage, despite opposition objections, sets the stage for implementing the VAT changes from next January.
The voting breakdown revealed support from members of the Sri Lanka Podujana Peramuna, the United National Party, and individuals who recently joined the government. Notably, Namal Rajapaksa expressed opposition to the VAT bill earlier in the day, but his absence during voting raised questions about his stance.
Despite the controversy, the bill has been approved, prompting discussions about the implications for the upcoming year and how citizens will navigate the changes.
