Speaker Karu Jayasuriya informed Parliament a short while ago that the Supreme Court had ruled that the Inland Revenue Bill would require a special majority and approval at a referendum, unless some provisions are amended.

The Supreme Court had decided that certain of the clauses contained within the draft Bill are inconsistent with the Constitution and would thereby require a two-thirds majority approval in Parliament in order to proceed with the Bill.   

Under the circumstances, it is likely the Inland Revenue Bill will be amended at the Committee Stage.

The new Inland Revenue Bill, which has the support of the World Bank and other credit rating agencies, is to be formulated to create a clear, direct, just and broad taxation system with a focus on reducing indirect tax on the people.

Finance and Mass Media Minister Mangala Samaraweera told reporters last month the government hoped to pass the Bill in the third week of August.