The Supreme Court (SC) ruled on 21 June 2013, that the government was not ratified to impose or increase sales tax from 16% to 17% on the value of taxable supplies by way of declaration under section 3 of the Provisional Collection of Taxes Act 1931 prior to the adoption of the Finance Bill 2013/14 by the parliament.
The Supreme Court also ruled that the increased sales tax amounts already collected by the government should be deposited with the Court’s registrar until the Finance Bill 2013/14 was passed by parliament.
