The Hon. (Dr.) Sandaruwan Madarasinghe

¶ 01 Hon. Deputy Chairperson of Committees, I am pleased to join the debate on amendments to the Inland Revenue Act, No. 24 of 2017.

¶ 02 On this National War Heroes’ Day, I must say: some politicians act as if all war heroes belong to their party and that entire families of war heroes are beholden to them. Unfortunately, beyond their official duties, service personnel were sometimes drawn into the sordid political agendas of certain powerful politicians, leading to consequences where even officers who rendered notable service were later imprisoned. How else do former heads of state intelligence face charges over the Easter attacks? How do Navy officers face allegations about abductions? How do officers face allegations over attacks on journalists and sportsmen? The root cause is politicians exploiting the “war hero” mantle for personal power.

¶ 03 In Hambantota’s Weeraketiya, we saw war heroes guarding family tombs and coconut plots for years in peacetime—not out of love for war heroes, but for private ends. When the Maha Nayake Theros objected to a car race around the Dalada Maligawa, war heroes were deployed to force through the event. A former President’s sons were installed as naval officers outside proper process. That is not love for war heroes. Respect must be demonstrated through proper systems, not words.

¶ 04 On hackers: even a former President’s account saw funds withdrawn by someone close by. Those who could not safeguard their own passbooks now preach to Government about recovering hacked funds. In 2021, USD 6.7 million was paid for organic fertilizer shipments—was that for farmers? Anyone can tell stories here; people should judge by the totality of deeds.

¶ 05 Turning to this Bill: although taxes form a major share of state revenue, there has long been low public and official trust in collection and spending, fostering a culture of non-payment. To fix this, on one side we must simplify processes; on the other, build a culture of paying while stamping out evasion and restoring confidence.

¶ 06 A recent report noted: “Reduce the Rs. 15.9 billion loss from sugar tax cuts under the Gotabaya Rajapaksa administration.” Another said: “After evading tax of Rs. 580 million, ‘Wayamba Distilleries’ linked to Johnston has reopened under a new name ‘Royal Ceylon’ after licence suspension.” If you truly wish to improve tax collection, start by settling these dues linked to politicians, rather than merely lecturing the Government.

¶ 07 On arrears: normally 1.5 percent per month (18 percent per year) interest applies; over five years that’s 90 percent extra. The Bill offers a six-month window where, if arrears are paid, all penalties and interest can be waived—an incentive to regularize.

¶ 08 On life insurance proceeds, there was no clear policy on taxing death benefits, surrender values or maturities. We are putting in clear, fair rules.