The Hon. Nishantha Jayaweera

¶ 01 Hon. Deputy Chairperson of Committees, it was claimed here that the new Government is piling tax upon tax. In the very first Budget, the new Government actually granted three key tax reliefs. One is Personal Income Tax. Previously, employees had an annual tax-free threshold of Rs. 1.2 million, and then 6 percent for each Rs. 500,000 increment thereafter. The new Government increased the monthly tax-free threshold for employees to Rs. 150,000—Rs. 1.8 million per year—and raised the next slab by Rs. 1 million with a 6 percent rate. Thus, contrary to claims of adding more taxes, the new Government has foregone revenue through relief.

¶ 02 Another point: The previous Government imposed a 5 percent withholding tax on all bank deposit interest, regardless of amount. The new Government abolished that and set a 10 percent withholding only for those subject to income tax. That is also relief. As for VAT, I note that milk and milk-based products have been exempted. Regarding school supplies, the Government has acted appropriately by granting a Rs. 6,000 allowance to low-income families for schoolchildren, making the system more equitable.

¶ 03 Finally, the aim of the President and the National People’s Power Government is to raise our country from its current state to a much higher level. Indicators show our economy is strengthening. We can say with confidence that in a short time we will place our country at a higher level.

¶ 04 Thank you, Hon. Deputy Chairperson of Committees.