The Hon. Kanchana Welipitiya

¶ 01 Hon. Deputy Chairperson of Committees, today we present amendments to the Inland Revenue Act No. 24 of 2017. In recent times, due to tax evasion by those who should pay, Government tax revenue as a percentage of GDP declined rapidly. We identified the causes: weak tax administration, inefficiency, corruption, tax fraud, relief to cronies, and evasion. That is why revenues fell. By 2023, over Rs. 1.1 trillion in tax revenue was lost to the Government.

¶ 02 Therefore, when the National People’s Power formed Government, President Anura Kumara Dissanayake clearly told the country we would regularize and make this system efficient; eliminate fraud, corruption, and waste; and introduce a simple tax system. In line with that, we bring these amendments. Despite the Opposition’s scare-mongering, no one’s taxes are being increased through these amendments, nor are we imposing undue burdens. We are making it simpler and easier for people to pay.

¶ 03 In 2025, we also brought reforms in this direction. Under Ranil Wickremesinghe’s Government, university academics and bank officers agitated to reduce PAYE. He said he could do nothing because the IMF required it, and asked them to negotiate with the IMF. After the NPP Government came to office, last year we amended it, increasing the threshold from Rs. 1.2 million per annum (Rs. 100,000 per month) to Rs. 1.8 million per annum (Rs. 150,000 per month). That shows we are implementing people-friendly measures.

¶ 04 In these new amendments, we have further reliefs. Previously a 5% tax applied to senior citizens; now, if their income is below Rs. 60,000 per month, they will not be taxed.

¶ 05 We have also proposed relief for businesspeople who donate during crises to help the country — for example, after the “Ditta” cyclone, many business leaders donated to Government. Where such donations exceed income in the year, provisions are included to carry forward appropriately in future years. Thus, there is relief for businesses contributing to the nation.

¶ 06 Overall, these amendments create a fair and simple way to collect taxes without the scare-stories the Opposition peddles.

¶ 07 Today the Leader of the Opposition says it is wrong to enforce the law against non-payers and that this burdens them. But during his Government, the Mendis/Arjun Aloysius group failed to pay due taxes. A Supreme Court case is pending alleging Arjun Aloysius and others defrauded Rs. 10.3 billion. Yet the Opposition Leader comes here to oppose enforcing the law and to justify them. That is the kind of Leader of the Opposition we have.

¶ 08 No one is burdened unfairly by these amendments. We tax what people earn; we do not tax what they do not earn. He also says diesel and petrol price hikes have broken businesses. Whatever the situation, taxes are levied according to income; we are not taxing retrospectively or arbitrarily.

¶ 09 As a country we face challenges. Sometimes Governments must take tough decisions. Recently, even India’s Prime Minister Narendra Modi appealed to his people to limit gold purchases and foreign travel due to global economic turmoil and the Middle East war. Our Government has acted to avoid placing such heavy burdens on our people. We have provided a Rs. 100 per litre subsidy for diesel and Rs. 20 per litre for petrol. Circulars were also issued to facilitate religious activities during Vesak week. Still, the Opposition levels baseless accusations, pretending there is no global crisis or Middle East war, as if everything is unique to Sri Lanka. We ask the people not to be misled.

¶ 10 This NPP Government was formed by the suffering common people. Our aim is to protect the people and to recycle the taxes they pay back to them through good management. That is why, during the “Ditta” cyclone, we were able to assist our people promptly.

¶ 11 In Kegalle District, especially in the Galigamuwa Divisional Secretariat division, we have already provided over Rs. 140 million to the affected people and are rebuilding over 90 houses — Rs. 500,000 each amounts to about Rs. 45 million. Funds have already been sent. We can do this because people pay taxes, and we do not waste or steal them.

¶ 12 This Bill too is a pro-people Bill to collect taxes correctly and provide relief. I request everyone’s support. I conclude.

¶ 13 Thank you.