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.
The VAT Amendments were passed as an urgent bill and did not receive enough public attention.
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.
Tax experts say multi-band indirect taxes however complicate administration.
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.
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