May 18, LNW (Colombo): Opposition leader Sajith Premadasa stated that the government’s proposed new tax policy could be described as a “fatal blow to democracy,” alleging that the current administration is attempting to surpass the targets set by the International Monetary Fund by linking tax administration with criminal offences.
He said the government is moving towards introducing a tax administration system where even unintentional negligence — such as forgetting to fulfill tax obligations, illness, or being overseas — could be treated as criminal acts. According to Premadasa, this amounts to a violation of fundamental and human rights, and using threats of imprisonment to collect taxes is an anti-democratic practice.
The Opposition Leader made these remarks during a meeting held at the Opposition Leader’s Office in Colombo with tax experts, business leaders, and other stakeholders connected to the taxation sector.
Premadasa further stated that the government’s actions are not only undemocratic and a violation of basic human rights, but are also creating fear among the business community. He warned that such measures could seriously hinder the creation of new businesses, the expansion of existing enterprises, and employment generation.
“A Challenge to Judicial Authority”
He also claimed that the new tax policy challenges judicial authority and violates the Constitution. According to him, the proposed provisions undermine the principles of checks and balances and the separation of powers among the three main democratic institutions — the legislature, the executive, and the judiciary.
“A Fatal Blow to Democracy”
While emphasizing that everyone liable to pay taxes must do so and that tax evasion should not be tolerated, Premadasa stressed that treating tax-related administrative issues as criminal offences is a severe threat to democracy.
He reiterated that although all individuals within the tax net must fulfill their tax obligations, criminalizing administrative shortcomings in taxation represents what he described as “a fatal blow to democracy.”