SJB goes to court against SGST

By Yohan Perera
Main Opposition Samagi Jana Balawegaya (SJB) yesterday filed legal action against the proposed Special Goods and Services Bill (SGST), MP Kabir Hashim said.
Hashim told a press conference that the proposed tax is a violation of Section 148 of the Constitution. 

“Section 148 states that Parliament has the power to control finances. As per this section, the revenue collected from all taxes should be credited to the consolidated account. However, the Special Goods and Services Bill proposes the setting up of a special account to which the revenue collected from the new tax is to be credited.

This account is going to be controlled by a deputy secretary of the Treasury. Parliament will not have any control over this new tax in such circumstances,” Hashim said.
Responding to a question as to why there would be an issue when the provisions have been made for Parliament to give its approval within three months after the gazette pertaining to the Special Goods and Services Bill is issued, Hashim said Parliament would not have the control over the revenue during these three months. 
“The funds collected from the Special Goods and Services Tax could go anywhere within this period,” he said.

Referring to the current financial crisis, Hashim said the government should go for an “orderly restructuring of debts”, with the support of the International Monetary Fund (IMF). 
“The Mahinda Rajapaksa administration borrowed US $ 2.6 billion in 2008 from the IMF and there were no adverse conditions put by the latter during that instance,” he pointed out.
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