2026-02-18 / debate: Special Commodity Levy Act Order, Customs Ordinance Resolution, Motor Traffic Act Regulations

Hon. Nishantha Jayaweera

2026-02-18

Deputy Minister of Economic Development Nishantha Jayaweera responded to a Member's claim that taxes had not been reduced, citing three specific tax relief measures implemented by the current government: raising the personal income tax threshold from LKR 1.2 million to LKR 1.8 million with adjusted initial tax bands; reducing VAT on essential items including milk and related products; and abolishing withholding tax on interest income for individuals not otherwise liable to tax. The Deputy Minister presented these measures as direct evidence countering the Member's assertion.

Since the Hon. Member asserted taxes were not reduced, let me clearly state three reductions we effected after coming to office: - We raised the personal income tax threshold from LKR 1.2 million to LKR 1.8 million and adjusted the initial tax bands, granting relief. - We reduced VAT on essential items including milk and related products. - We abolished the withholding tax on interest for those not otherwise liable—so only actual taxpayers are subject to it.