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Who’s The Fool?

Tax changes proposed by the last budget got the legislative stamp recently but experts speaking at a forum said the tax system is now even more complicated.
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Tax changes proposed by the last budget got the legislative stamp recently but experts speaking at a forum said the tax system is now even more complicated. The government introduced a three rate VAT in the last budget to increase collections and widen the indirect tax base.
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The VAT Amendments were passed as an urgent bill and did not receive enough public attention.

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A three band VAT was introduced in the Act at a basic rate of 5 percent a standard rate of 15 percent and a luxury rate of 18 percent.

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Tax experts say multi-band indirect taxes however complicate administration.

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The Inland Revenue supported a unified VAT rate for ease of administration.


However, critics of a unified rate say it is only suitable for a state where citizens have high incomes.

"It is becoming periodical," says N R Gajendra, Tax Expert.

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Policy changes will also be a little tougher to implement if it involves indirect taxes.

In the past, finance ministers were able to gazette changes to t

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