Opposition Leader Sajith Premadasa stated that the current government, in its attempt to exceed the targets set by the International Monetary Fund, is creating a link between tax administration and criminal activities.
He alleged that the government is working to introduce a tax administration system that treats the failure to meet tax obligations due to reasons such as forgetfulness, illness, or travelling abroad as criminal offences. He said this amounts to a violation of fundamental and human rights, adding that collecting taxes through the threat of imprisonment is an anti-democratic act.
Premadasa made these remarks during a meeting held with tax experts, business leaders, and other stakeholders in the sector at the Opposition Leader’s Office in Colombo.
The Opposition Leader further stated that the government’s move is undemocratic, violates fundamental and human rights, and poses a serious threat to the business community. He warned that it could significantly impact the establishment and expansion of new businesses as well as job creation.
“This new tax policy is a challenge to the judiciary”
Premadasa also claimed that these government provisions challenge the judiciary and violate the Constitution. He said they undermine the principle of checks and balances and the separation of powers among the three key democratic institutions — the legislature, the executive, and the judiciary.
“This is a fatal blow to democracy”
The Opposition Leader emphasized that those who are liable to pay taxes must fulfill their tax obligations and that tax evasion should not be encouraged. He said everyone within the tax net must pay taxes, but warned that criminalizing such matters would deal a fatal blow to democracy.
