Tuesday Jun 23, 2026
Tuesday Jun 23, 2026
Tuesday, 23 June 2026 05:41 - - {{hitsCtrl.values.hits}}
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| CoPF Chairman MP Dr. Harsha de Silva |
Deputy Minister Chathuranga Abeysinghe |
Opposition MP and Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva has defended his scrutiny of the Government’s proposed tax reforms, arguing that Parliament’s public finance oversight role is essential to ensuring tax policy is implemented fairly and effectively.
Responding to criticism from Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, Dr. de Silva said his role as CoPF Chairman, a position reserved for the Opposition under Parliamentary Standing Orders, was to question and examine Government policy rather than obstruct it.
“My role as CoPF Chair, reserved by Parliamentary standing orders for the opposition, is to ask hard questions about Government policy. Not to obstruct. Not to politicise. To scrutinise,” Dr. de Silva said in a social media post.
He said several concerns were raised during last week’s CoPF examination of proposed Value Added Tax (VAT) amendments, including the reduction of the VAT registration threshold, the treatment of foreign digital platforms, the continued application of the Social Security Contribution Levy (SSCL), and the taxation of online betting operators.
Dr. de Silva noted that businesses with daily turnover of around Rs. 100,000 would fall within the VAT net from July 2026 under the proposed threshold changes, leaving many small enterprises with limited time to understand and comply with the new requirements.
He proposed that the Government provide small and medium enterprises (SMEs) with additional support, including capacity-building programs and incentives to adopt Point of Sale (POS) systems, to facilitate compliance.
The CoPF Chairman also highlighted what he described as unequal treatment between local and foreign digital platforms, citing ride-hailing operators as an example. He argued that differences in VAT obligations could place domestic businesses at a competitive disadvantage.
In addition, Dr. de Silva raised concerns about VAT collection from foreign-owned tourism accommodation providers that process payments offshore, suggesting that enforcement mechanisms may need to be strengthened.
Referring to discussions at the CoPF, he said officials had indicated that the combined impact of VAT and the SSCL resulted in an effective consumer tax burden of 22% to 23%, and called for a clear timeline for the eventual removal of the SSCL.
He also said the implementation of VAT on online betting operators would be closely monitored ahead of the 30 June deadline.
“Sound tax policy is not just about collecting more. It is about collecting fairly, efficiently, and in a way that keeps businesses willing to stay in the formal economy,” Dr. de Silva said.
He added that he remained committed to supporting a strong and equitable formal economy through effective Parliamentary oversight of public finance matters.
