The Hon. Sajith Premadasa - Leader of the Opposition

¶ 01 Mr. Speaker, under Standing Order 27(2), I raise the following:

¶ 02 Although the Government’s policy statement “A Prosperous Country – A Beautiful Life” speaks of re-engaging with the IMF to design a stronger, correct programme to relieve the people from destitution, the present Government appears to act in line with the previous Government’s policies with the IMF, thereby breaking its election promise. Therefore, on behalf of the people, I ask:

¶ 03 1. At the media briefing on the IMF’s Staff-Level Agreement for the Fourth Review, it was stated that electricity tariffs should be aligned to a “cost-recovery method” and that the automatic price adjustment mechanism should function properly. Is the present Government going to increase electricity tariffs accordingly? Notably, the IMF “cost-recovery method” and the PUCSL’s “cost-recovery pricing” differ significantly, yet the Government accepts the IMF method while discarding the PUCSL method. We need a direct answer.

¶ 04 2. Has the Government assessed the impact on consumers from any such tariff increases, particularly for the 0–90 kWh brackets, given their vulnerability?

¶ 05 3. Regarding the abolition of SVAT: - Has the new mechanism to replace SVAT been finalized? What is it? - Before implementation, will the Government settle outstanding VAT refunds accumulated over past years? - Does the Inland Revenue Department (IRD) have sufficient technical and human resource preparedness to implement the new system?

¶ 06 4. Has the Government studied the additional burden on exporters—especially SMEs—from abolishing SVAT amid global headwinds? What targeted relief is envisaged?

¶ 07 5. Is the abolition of SVAT being done on IMF advice? I urge reinstatement of SVAT to support exporters.

¶ 08 6. On the tax applied to foreign digital service providers: - What revenue is expected? - What specific IMF recommendations influenced this decision? - We hear the IMF suggested a 30% tax, but the Government is imposing 15%. Why tax these services, and is it an IMF condition? What is the assessed impact on service benefits to users?

¶ 09 7. On the senior citizens’ special deposit scheme effective 1 July: - Will a minimum 15% interest rate be guaranteed?

¶ 10 8. Withholding tax on children’s deposit interest is causing hardship. Is the Government aware, and what solutions are proposed? Is taxing children’s accounts fair, and is this a result of the IMF agreement?

¶ 11 9. Issuance of TINs to all above 18 has become problematic. Please clarify the process.

¶ 12 I expect structured answers from the Government. Thank you.