10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

The Hon. Kabir Hashim

Samagi Jana Balawegaya· Kegalle· 19 May 2026 ·Debate: Debate: Second Reading of Inland Revenue (Amendment) Bill and Committee Stage

Public FinanceJustice & Human RightsEmployment
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Kabir Hashim argued that the Government has failed to recover large VAT and tax arrears, citing Rs. 309 billion allegedly paid by consumers to private companies and Auditor General findings on missing files related to court cases. He criticized Clause 34 introducing Section 185A as a draconian criminal-law approach to tax compliance that would intimidate small businesses and entrepreneurs, especially amid IMF revenue pressures. He also questioned the consistency of launching an SME strategy while introducing measures he said would deter businesses, and urged the Government to amend the clause.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Please give me two more minutes, Sir.

¶ 02 The poor in this country, as consumers, have already paid about Rs. 309 billion in VAT to private companies through the medicines we buy, the books and stationery, our daily essentials. You have still not recovered this. Instead, you are bringing a criminal law regime. Is this fair? According to the Auditor General’s 2023 Report, there were 46 court cases, and Rs. 296 million should be recoverable from them, but those files are missing. So you have not recovered that either. Your inefficiency and weakness prevent you from mobilizing revenue; when the IMF breathes down your neck, you bring criminal law to frighten and suppress small people and budding entrepreneurs, depriving them of opportunities and crushing their initiative. This is serious.

¶ 03 I think Clause 34 which introduces Section 185A is a draconian piece of legislation, Hon. Minister. Think about that. This is not the way it is done. Tax compliance is a social contract with the people. You do not collect taxes by forcing people, aiming the barrel of a gun. That is not the way it is done. This is bad for our country.

¶ 04 Then, you are trying to bring in investments. I saw that last week the Hon. Minister launched the National SME Strategy Framework targeting US dollars 300 billion. At that launch, a World Bank survey clearly pointed to what? For businesses, especially SMEs, a key challenge is tax collection and tax administration. In the midst of this, you are bringing in a criminal law regime. What are you doing? Where is the consistency? On one hand, you table an SME strategy; the next week you bring a Bill that frightens businesses. Even your own government does not know where it is headed.

¶ 05 Once again, as the Opposition, we ask the Government to amend Clause 34 introducing Section 185. Saying that this is vital for our country, I conclude.

¶ 06 Thank you.

Provenance

Source
Hansard, Tuesday, 19 May 2026 ·No. 23608 ·English daily/uncorrected Hansard
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Cite as: The Hon. Kabir Hashim. 10th Parliament, Parliament of Sri Lanka. Hansard, 19 May 2026. No. 23608. Politick, https://staging.politick.io/lk/speeches/29210