Interim order by SC suspends VAT increase

Question

The Supreme Court on Monday (11) issued an interim order to suspend the Value Added Tax (VAT) increase. The Supreme Court issued the order after considering a petition filed seeking an order to revoke the decision to increase VAT.  The petition was filed by an attorney representing three persons including National Freedom Front leader Wimal Weerawansa.  The petition has sought an interim order preventing the relevant authorities from ordering the public to pay the VAT.  It has also argued that a Parliament approval is a must before the tax is increased. The VAT was increased from 11% to 15% with effect from May 02, 2016. Several protests and hartals were also organised by the traders across the country including in Kiribathgoda, Kadawatha, Kelaniya, Anuradhapura, Badulla, Bandarawela and Katugastota over the past few days against the decision to increase VAT. -

 

 See more at: http://www.adaderana.lk/news/36023/interim-order-by-sc-suspends-vat-increase#sthash.vXyESmJe.dpuf

Answer 1

What should we do?

Answer 2

The required amendments are already tabled  in Parliament  and soon it will get passed.  It is very likely that the amendments will have provisions to implement the amendments restrospectively (valid from the past).  Therefore even if you pay at 11% now as per court order you may have to pay the balance later.  This is just what i feel.

Answer 3

But your customers can deny any invoice with 15% VAT. So you can apply previous rates until amendment is passed.

Answer 4

The IRD notices are suspended as per Supreme Court order. Here is the notice