The Hon. Thilina Samarakoon

¶ 01 Hon. Presiding Member, as we debate the Inland Revenue (Amendment) Bill, I recall that today marks the symbolic day we remember the end of nearly 30 years of war. We salute the Tri-Forces, Police, and Civil Defence who sacrificed to end it. The root of that war lay in mutual suspicion among communities; as a responsible Government, we are committed to preventing its recurrence and building a truly Sri Lankan nation.

¶ 02 Some Opposition Members alleged we inadequately engage with the military. In fact, the Hon. President is meeting Army officers and attending today’s ceremony. From my experience in Anuradhapura, the largest Tri-Forces housing complex “Rana Jaya Pura” faced land controversies where lands meant for war heroes had been appropriated under previous administrations. The Defence Ministry and our senior officials have initiated reviews, and we are preparing to resolve issues faced by residents and veterans.

¶ 03 Turning to the Bill to amend the Inland Revenue Act, No. 24 of 2017: We bring these amendments to strengthen the tax net and system because past administrative weaknesses allowed tax evasion, favours, and corruption. We need structured processes, including benefits for compliant taxpayers—these cannot be built overnight since no such framework existed before. Through these amendments, we aim for proper regulation.

¶ 04 In 2023, taxes evaded amounted to about Rs. 11,000 million. By strengthening the tax net and administration, we can curb such leakages and improve revenue collection. Indirect taxes accrue automatically during consumption; direct taxes require voluntary compliance. Where voluntary compliance is lacking, lawful measures are necessary.

¶ 05 Key features: - Senior citizens can reclaim, within three months and without audit, the reduced portion of interest income withheld under withholding tax. - Donations to universities or higher educational institutions will attract relief. - Every person must obtain a TIN and be issued a TIN certificate. - A new system for advance installment payments will be based on last year’s taxable income when paying in tranches. - Reduction of cash transactions is encouraged. - Benefits arising solely from motor vehicle availability are excluded from taxable income calculations. - Unused qualifying donations can be carried forward and deducted in subsequent years. - Amounts received under life insurance on death, policy maturity, or surrender value are excluded from taxable income. - The Commissioner General is empowered to grant tax credits to entities under stipulated conditions. - For wage arrears received in a lump sum, installment-based tax payment aligned with applicable rates is provided.

¶ 06 These steps are to encourage compliance, increase State revenue, and uplift living standards, while managing the economy out of past crises toward a stronger country. I conclude.

¶ 07 Thank you.