COLOMBO: The Special Goods and Services Tax Bill which provides for the imposition of a tax, in lieu of the sums chargeable on such specified goods and services by way of tax, duty, levy, cess or any other charge imposed by law was issued on 07 January 2022.
The Special GST is a composite tax on specified goods liquor, cigarettes and vehicles (inclusive of parts for assembling of vehicles) and services (telecommunication and betting and gaming) and every manufacturer, importer or service provider of any specified goods or services are liable to pay the tax. The rate of tax and basis of tax is to be specified by the Minister by Order published in the Gazette
As per the Bill, the composite tax will be levied in lieu of the following tax, duty, levy, cess or any other charge imposed currently.
- Excise Duty under the Excise Ordinance (Chapter 52) and the Excise (Special Provisions) Act, No. 13 of 1989
- Cellular Tower Levy, Luxury Tax on Motor Vehicle , Levy on Mobile Short Messages Services, Vehicle Entitlement Levy under the Finance Act, No. 35 of 2018
- Levy on gross collection under the Betting and Gaming Levy Act, No. 40 of 1988
- Customs Duty under the Customs Ordinance (Chapter 235)
- Cess under the Sri Lanka Export Development Act, No. 40 of 1979
- Port and Airport Development Levy under the Ports and Airports Development Act, No. 18 of 2011
The Bill includes the administrative provisions including the requirement to file Returns, Payment deadlines, offences, penalties etc. The Bill further states that the Secretary to the Treasury shall set up a unit under the purview of a Deputy Secretary to the Treasury (referred to as the “Designated Officer”). The Designated Officer shall be charged with the responsibility of the administration, collection and accountability of the Special Goods and Services Tax.
The Bill further reveals that a taxable person should pay the Special GST by way of an electronic fund transfer to an account opened and maintained in the name of the Designated Officer for the purposes specified in the law and such payment shall be deemed to be a credit to the Consolidated Fund.
