The main parliamentary opposition SJB has announced its firm opposition to the Government’s proposed revisions to the tax framework, accusing the administration of reneging on its pre-election promise of no tax increases.

Speaking to The Daily Morning yesterday (1 March), SJB National Organiser Tissa Attanayake criticised the new bill set to be presented to Parliament, which seeks to introduce higher taxes on capital gains and expand the scope of withholding tax.

He said the public should question the Government’s fiscal management, pointing to its earlier claims of a sufficiently stocked treasury. “The Government has pledged that the treasury has enough reserves, and it continues to project the image of a well-funded treasury. It is government expenditure that has increased,” he said.

Attanayake further alleged that the simplicity promised by the administration had disappeared and that expenditure linked to the President and ministers had increased, prompting attempts to revise the tax framework. “The Government that earlier promised a no-tax policy has clearly changed course due to these expenses. We are firmly opposed to further taxation."

The Government has tabled changes to Sri Lanka’s tax framework proposing higher taxes on capital gains, a wider withholding tax net, and a one-off relief window for those with unpaid dues. The bill is yet to be presented in Parliament. If passed without amendments, the Capital Gains Tax (CGT) rate for individuals and partnerships will increase to 15%, up from the current 10%, meaning the share payable to the Government after selling an asset would rise significantly.