• Everyone who earns a monthly income of more than Rs.100,000 will have to pay income tax

By Yohan Perera  

Some four million people who depend on small and medium enterprises(SMEs) are to end up in poverty due to the government’s decision to increase taxes, Leader of Opposition Sajith Premadasa said over the weekend.    

Speaking during an SJB meeting in Nathandiya, the leader of the opposition said everyone who earns a monthly income of more than Rs.100,000 will have to pay income tax. “Everyone who earns more than Rs.100,000 is liable to pay income tax. Some 4 million people currently depend on SMEs in Sri Lanka. Therefore these 4million people are going to be stricken with poverty because of the new tax policy,” he said.  “There are few companies which earned super profits during the COVID 19 pandemic. These companies should be made to pay high taxes. The claim by the government that tax revenue should be increased to 14 percent of GDP is acceptable. However the issue today is the government’s approach to achieve it.
“ The resignation of former Prime minister Mahinda Rajapaksa , resignation of Finance Minister Basil Rajapaksa , the exit of President Gotabaya Rajapaksa and the appointment of incumbent President Ranil Wickremesinghe was a part of a preplanned political strategy.  However none of these can survive if an election is held,” Premadasa said.