Opposition Leader Sajith Premadasa Criticizes Proposed VAT Amendments, Warning of Business 'Extraction'

Opposition Leader Sajith Premadasa has strongly criticized the government's upcoming Value Added Tax (VAT) amendments, scheduled to take effect on July 1. He warned that the proposed changes, which include widening the VAT net, raising rates, and tightening enforcement simultaneously, will "suffocate" businesses rather than foster growth. Premadasa highlighted that small and medium-sized enterprises (SMEs), financial services, and the digital economy will be significantly impacted, leading to increased compliance burdens. He characterized the policy not as reform but as "extraction," arguing that taxing an economy into growth is unsustainable and risks business survival.