By The Pulseline News Desk
Opposition Leader Sajith Premadasa has accused the Government of placing a growing tax burden on ordinary citizens while extending tax concessions to cigarette manufacturers, raising concerns over the fairness and effectiveness of the country’s fiscal policies.
Speaking during the parliamentary debate on the economy, Premadasa argued that much of the Government’s recent revenue growth had been driven by increased taxation on individuals and businesses. He pointed to higher Value Added Tax (VAT) rates and other levies that, he said, have added pressure on households and the private sector at a time when many are struggling with the rising cost of living.
The Opposition Leader questioned the Government’s approach to tobacco taxation, claiming that taxes on cigarettes had been reduced despite recommendations from the World Health Organisation (WHO) to maintain higher taxes on tobacco products as a public health measure and a source of government revenue.
According to Premadasa, the reduction in cigarette taxes has resulted in an estimated loss of Rs. 17.3 billion in potential State revenue. He urged the Government to review the policy, arguing that the additional income could be used to provide relief to the public, lower the cost of essential goods, and strengthen public finances.
Premadasa also highlighted the broader impact of the current tax regime, expressing concern about its effects on businesses, employment opportunities, retirees, and overall economic activity. He maintained that while citizens and enterprises are being asked to bear heavier tax obligations, opportunities to increase revenue through tobacco taxation are being overlooked.
His remarks come amid continuing debate over the Government’s revenue measures and efforts to balance fiscal consolidation with economic recovery.
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