New GST and VAT Amendment Bill to be gazetted

The Cabinet of Ministers has given the approval to gazette the Special Goods and Services Tax Bill and the Value Added Tax (Amendment) Bill and to submit them for parliamentary approval.

The go-ahead was given to the relevant proposal tabled by Finance Minister during the Cabinet meeting held on Monday (January 03).

Both Budget 2021 and 2022 have proposed to replace the taxes and levies imposed under various statutory laws with a single tax that is managed online to increase the efficiency of tax collection on liquor, cigarettes, telecommunications, betting and gaming and vehicles.

Budget 2022 also proposed to increase the value-added tax on financial services and to exempt medical equipment, devices and chemicals donated to government hospitals and the Ministry of Health under epidemic or public health situation from the Value Added Tax.

Thereby, it was decided to gazette the Special Goods and Services Tax Bill and the Value Added Tax (Amendment) Bill prepared by the legal draftsman after receiving the Attorney General’s clearance.