The Hon. Namal Rajapaksa, Attorney-at-Law

¶ 01 Hon. Deputy Speaker, thank you.

¶ 02 I do not intend a long discourse on tax policy and the constantly changing structures. From the outset, this Government has lacked a clear, consistent tax policy. Whenever State revenue lags, taxes are raised to fill gaps, rather than growing revenue through production and efficiency. Even claims of expenditure cuts are numbers on paper; yet every few months a new tax hike is brought to Parliament.

¶ 03 Some Ministers proudly say, “Vehicles were not allowed; when we came, we allowed imports.” Vehicle import reopening this year was already embedded in the recovery plan. It is not an achievement unique to this Government. You also promised “affordable taxes” and vehicles at Rs. 1.2 million. Instead, duty rates on vehicles, including EVs, have only moved upward. I understand about Rs. 90 billion has been collected so far; your target was around Rs. 750 billion, but indications are it may stall near Rs. 350 billion—please correct me if I am wrong.

¶ 04 This Gazette is not new in spirit; had you understood technology and EV/hybrid fundamentals from the start, you would not be reversing Gazettes and constantly altering bands. From the beginning, this Government has moved away from renewables and cleaner energy. A small example: solar panels installed at religious sites have not been given grid connections. Seven months in power and not a single major renewable project has received even provincial approvals. To balance the grid, you turn to coal and fossil fuels instead of mini-hydro or other renewables. During New Year you asked households to switch off rooftop solar—moving away from low-cost generation to higher-cost thermal.

¶ 05 Now you increase EV taxes and nudge people back to petrol and diesel, with inadequate charging infrastructure and no clear policy. Globally, EV taxes are being reduced; here, they are raised. Take Vega’s Sri Lankan-made electric three-wheeler—fully “Made in Sri Lanka,” with IP here—yet you levy the same heavy duty as on an imported one. That kills domestic industry. It is more profitable, under your policy, to import than to build locally—contrary to a production economy.

¶ 06 From day one, you spoke of imports. Recently you opened a salt factory in Elephant Pass and said the salt problem is over; yet now we import salt, blaming the rain. Previously, you blamed prior governments; eight months in, you now blame the weather. Even at the National War Heroes commemoration, the President invoked landslides from rains as a national security matter—diminishing the solemnity of the occasion.

¶ 07 This Government is deliberately shifting away from renewables to diesel and coal lobbies. Back then you cried “coal mafia” and “diesel mafia”; now what are you doing?