Pariament to discuss tax hikes

The government on Thursday announced in parliament that it wants to introduce temporary tax hikes to increase state income. Legislators from the opposition as well as the coalition demanded guarantees from the government so that everybody can be rest assured that the tax hikes will achieve their goal while also being bearable for the people. The temporary tax hikes are reportedly necessary to finance the government’s Crisis and Recovery Plan. The government wants to raise sales tax with 2% and the income tax for big earners with 10%.

The leader of the VHP faction in parliament, MP Asiskumar Gajadien, urged the government to explain the measures “in all languages” to the nation before introducing them. It was also recommended that the tax hikes should be evaluated after 6 months to assess the situation and the progress. “One of the tax measures is aimed at letting the high income groups make an additional sacrifice so that the broadest shoulders can carry the heaviest burdens,” said the government.