Sajith slams proposed tax clause for ‘criminalising’ small businesses

Friday, 15 May 2026 06:50 - - {{hitsCtrl.values.hits}}

Opposition Leader Sajith Premadasa

Says Govt. weaponising tax law against common citizens

Opposition Leader Sajith Premadasa yesterday strongly criticised the Government’s proposed tax reforms, warning that a new clause under the tax law could unfairly criminalise ordinary taxpayers and small business owners over administrative errors.

In a post shared via ‘X,’ Premadasa took aim at the proposed Clause 185A, alleging that the provision could turn routine compliance failures such as delayed tax return filings or registration lapses into criminal offences.

He argued that the move risks placing struggling small entrepreneurs in the same category as individuals who deliberately evade taxes or conceal large sums of income.

“People are not angry about paying taxes. People are angry about being treated unfairly,” Premadasa said, insisting that the issue is not taxation itself, but the lack of proportionality in enforcement. “That is wrong,” he added.

The Opposition Leader accused the Government of opting for punitive legal measures instead of focusing on structural reforms within the country’s tax administration.

“Instead of fixing the tax system, modernising the Inland Revenue Department (IRD), and making compliance easier, the Government is taking the shortcut of criminalising ordinary people,” he noted.

Premadasa also questioned the Government’s commitment to tackling larger financial crimes, asking why similar urgency has not been shown in addressing corruption, money laundering, financial fraud, and the recovery of stolen public assets.

“If they have the strength to pass laws this fast, then where are the real anti-corruption laws? Where is the action against financial fraud, money laundering, and those who stole public wealth?” he queried.

He called on authorities to focus enforcement efforts on real fraudsters and the corrupt rather than “weaponising the law against the common man.”

“We will never stay silent when laws go against fairness, proportionality, and the constitutional rights of the people,” he added.

The remarks come amid growing political debate over the Government’s proposed tax amendments, which have sparked concern among sections of the business community and Opposition parties over the potential legal implications for small and medium-sized enterprises (SMEs).