The Hon. (Dr.) Harsha de Silva

¶ 01 Hon. Speaker, in five minutes it is difficult to cover much.

¶ 02 I listened to the Deputy Minister. He sought credit even for Central Bank interest rate reductions, despite having opposed Central Bank independence legislation and insulting the Governor. Give credit where due.

¶ 03 He says the first slab moved from Rs. 100,000 to Rs. 150,000 and that 12 per cent was removed so it goes 6 per cent then 18 per cent. That is what he touts.

¶ 04 He stated six points. First, “It was 30 per cent; we made it 15 per cent.” I earlier questioned whether this is corporate or personal. I will not repeat. But what happened? Your book says you would remove taxes on food items. You did not; you still expect Rs. 13.6 billion from food. That is where the 30 down to 15 calculation is offset. If it had remained at 30, they expected Rs. 13.6 billion; at 15, Rs. 6.8 billion. But since you did not remove the Special Commodity Levy on food, you still get Rs. 13.6 billion. So tell the truth: you did not remove the food taxes, and you pass 16 tax items today including the SCL on food.

¶ 05 Second, double taxation relief is not new; many DTTs exist. If 12 per cent is paid abroad and the domestic rate is 15, then 3 per cent is due — that is standard.

¶ 06 Third, tax is not on gross but on net after costs — that is standard for consultants, architects, etc.; not a new concession.

¶ 07 Fourth, claiming “no one pays 36 per cent” is wrong. Domestic earnings face up to 36 per cent. Your book promised zero on domestic software; now you tax at 36 per cent. A small YouTube channel with foreign viewers now faces 15 per cent; earlier it was near zero. For domestic sales, you levy up to 36 per cent.

¶ 08 Fifth, quarterly payments and year-end settlement is not a new relief; that is how we all pay.

¶ 09 Finally, if politicians have stolen, arrest them; do not keep chanting.

¶ 10 Thank you.