The Hon. (Dr.) Anil Jayantha

¶ 01 Hon. Speaker, briefly: I clearly stated that improving tax efficiency is one element. Efficiency and base-broadening together underpin the 2025 projections following the second review. Efficiency is only one aspect. We are moving toward a more transparent, fair, and broadened base. The point I raised related to only one part of the answer; any other interpretation is incorrect.

¶ 02 On refunds: we are proposing a mechanism. The Hon. Leader of the Opposition says it is difficult. I do not know how one can conclude difficulty without using or observing the system. We accept there are issues in refunding; recognizing that, we have devised the approach whereby those under Rs. 1.8 million will not be withheld at source upon declaration, and those above can claim credit. We will use declarations and technology; let us implement this and see whether issues arise. Do not reach conclusions on assumptions.

¶ 03 On 15 percent interest: fixed rates such as 15 percent are not structurally permanent; they depend on macro conditions. When 15 percent was proposed in 2022, market rates rapidly rose toward 30 percent, and the 15 percent scheme was naturally overtaken and discontinued. In a stabilizing economy, rates should fall progressively. As rates decline and purchasing power stabilizes, we have provided an additional three percent as a targeted, affordable support.