Following the enactment of the Finance (Miscellaneous Provisions) Act 2015, Members are informed that amendments have been made to the Consumer Protection (Price and Supplies Control) Act 1998 regarding the price labels to be affixed before the supply of goods and services.
The amendments in the new legislation, which will come into force as from 1st July 2015, are as follows:
Section 7(1) and 7(2) of the Consumer Protection (Price and Supplies Control) Act 1998 have been amended and now cover the supply of both goods and services.
For taxable goods and services, price labels must indicate, in addition to the selling price, whether the price is "VAT Inclusive" or "VAT Zero".
In the case of VAT-exempt goods and services, price labels must indicate the selling price and "VAT Nil".
Any person failing to comply with the legislation regarding price labels is liable to "a fine not exceeding Rs. 300,000 and to imprisonment for a term not exceeding 5 years."
It must be noted that the provisions relating to the colour of the price labels remain unchanged with white labels required for “VAT inclusive” products and blue labels for “VAT Zero” and “VAT Nil”.
A copy of the Finance (Miscellaneous Provisions) Act 2015 can be accessed here.