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Budget has increased Tax burden by Rs 8,200 per family; Corporate tax evaders ignored – FSP
JVP-breakaway the Frontline Socialist Party says that their erstwhile colleagues-led NPP Government’s maiden Budget has raised the tax burden per family by Rs 8,200 this year.
Addressing a press conference held at the FSP Headquarters, in Nugegoda, on Monday, the party’s Education Secretary, Pubudu Jagoda, stated that every family will have to pay approximately Rs. 40,000 in taxes when purchasing goods and services this year—an increase of Rs. 8,200 compared to the previous government’s tax burden.
“This government, in its 2025 Budget, has formulated policies favouring large-scale corporations rather than focusing on the general public. This is evident when examining the tax revenue policies. Currently, the government imposes a 30% tax on large-scale corporations. However, no efforts have been made to increase this tax. On the other hand, the tax on individual businesses has been raised from 10% to 15%. Similarly, the tax on small partnerships has also been increased from 10% to 15%. Additionally, the current 10% tax on trustee funds and individual funds has been tripled to 30%. Even the 10% tax on the assets of non-profit welfare organizations has been increased to 30%. Clearly, the entire burden of this Budget is being placed on ordinary people running small businesses, while large-scale corporations are being completely exempted from this burden.
The difference between the income tax revenue of 2024 and the expected income tax revenue of 2025 is a mere Rs. 141 billion. This indicates that the government is not prepared to recover the taxes that were evaded in the past. According to the Parliamentary Procedures and Practices Committee report presented in March 2024, the amount of taxes evaded by large-scale corporations is Rs. 1,068 billion. However, there is no target in this Budget to recover even half of this amount. In 2023, the government provided tax relief of Rs. 978 billion to large corporations. As the Frontline Socialist Party, we proposed to the government to reduce this tax relief and provide some relief to the general public. However, no attention was paid to this.
We are concerned that this Budget has been designed to make it easier for large corporations to evade taxes. The reason for this is that the Budget deficit this year is Rs. 2,200 billion, yet the borrowing limit has been increased to Rs. 4,400 billion. If the Budget deficit is Rs. 2,200 billion, why borrow Rs. 4,400 billion? This is not a small gap but a doubling of the deficit. This shows that the government is already expecting large-scale corporations to evade taxes this year as well. The increase in the borrowing limit is a preliminary step in preparation for this. According to the latest report from the Ministry of Finance, Rs. 966.6 billion in taxes have been evaded from March 2023 to December 2024. This amounts to nearly Rs. 1 trillion.
All these taxes are being evaded by large-scale corporations. Ordinary people cannot evade taxes in this manner. Ordinary people must pay taxes on everything they buy, from a packet of sugar to a bar of soap. In recent times, these corporations have evaded taxes amounting to nearly Rs. 1 trillion. We have seen Minister Lal Kantha stating in Parliament that this is not neoliberalism or socialism but economic democracy. The President claims that this is a people-centric economy. If so, is this government, which calls itself a people-centric or economic democracy, involving the general public more in paying taxes? While allowing large corporations to evade taxes, the Budget is designed to extract taxes from the flesh and blood of ordinary people. According to this government, neither Ranil nor Rajapaksa are neoliberals. Therefore, we urge the government not to misuse the term ‘economic democracy’ in this manner. These terms have historical meanings. What the National People’s Power government is doing is completely contrary to those meanings.
This year, taxes on goods and services have increased by 25.94%. In 2024, the tax revenue from goods and services was Rs. 2,201 billion. This year, it is expected to increase to Rs. 2,772 billion. If this amount is divided among the 5.8 million families in Sri Lanka, each family paid Rs. 31,623 in taxes last year. This year, each family is expected to pay Rs. 39,817 per month in taxes. Due to this Budget, the average tax amount a family has to pay per month has increased by Rs. 8,200 compared to last year. This means that living this year will be more difficult than last year. According to the Department of Census and Statistics, the average monthly expenditure of a family is Rs. 78,000. Looking at it this way, Rs. 40,000 of this will have to be paid to the government as taxes. How much will be left for people to meet their daily needs? Whether buying medicine or a pen for a child going to school, a large tax must be paid. The government has not removed the VAT on educational and medical equipment. This is unbearable for the people,” Jagoda said.
News
Sri Lanka says it denied US request to land two aircraft at Mattala airport
Sri Lanka’s president says his government turned down a request from the United States to land two US combat aircraft at a civilian airport earlier this month.
President Anura Kumara Dissanayake told Sri Lanka’s parliament on Friday that Washington had requested permission for the aircraft to land at Mattala Rajapaksa International Airport in southern Sri Lanka from March 4 to 8.
The request was made on February 26, two days before the US and Israel launched their military offensive against Iran.
“They wanted to bring two warplanes armed with eight antiship missiles from a base in Djibouti”, Dissanayake told lawmakers. “We turned down the request to maintain Sri Lanka’s neutrality”, he added to applause.
The US-Israeli war on Iran has sparked widespread concern globally, as Iranian missile and drone attacks across the wider Middle East have sent energy prices soaring and fuelled fears of a widening conflict.
US President Donald Trump has also been pressuring Washington’s allies to show more support for the war, slamming NATO countries as “cowards” for refusing to help secure the Strait of Hormuz.
Iran has essentially shuttered the critical Gulf waterway amid the war, forcing leaders around the world to scramble to try to offset the effects on their economies and energy supplies.
Amid the turmoil, many countries have refused to get directly involved in the war while calling for urgent de-escalation.
On Friday, Switzerland announced that it would halt any weapons exports to the US that could be used in military operations against Iran, citing its longstanding policy of neutrality.
“The export of war materiel to countries involved in the international armed conflict with Iran cannot be authorised for the duration of the conflict”, the Swiss government said.
Sri Lanka’s president also cited his country’s neutrality in the decision to deny the US request to land the two aircraft at Matalla airport earlier this month.
Dissanayake said he had received another request that same day, on February 26, from Iran to seek permission for three naval vessels to make a goodwill visit to Sri Lanka.
“With two requests before us, the decision was clear,” he said, noting that the government denied both to avoid taking sides as signs of escalating conflict emerged.
“Had we said ‘yes’ to Iran, we would have had to say ‘yes’ to the US, as well”, Dissanayake added.
In early March, Sri Lanka’s navy rescued 32 Iranian crew off IRIS Dena after it was torpedoed by a US submarine off the country’s coast, killing at least 84 people.
Days later, Sri Lanka evacuated more than 200 crew members from a second Iranian vessel, IRIS Bushehr, after the ship requested assistance from Colombo.
[Aljazeera]
News
President maintains Lanka has been even-handed in dealing with Iran and US
Sri Lanka refused the request by three Iranian ships to come to Sri Lanka on a goodwill visit and the request by the United States to land two of its fighter jets in Mattala, President Anura Kumara Dissanayake told Parliament yesterday.
“Sri Lanka maintained neutrality by refusing the two requests by both the US and Iran,” he said.
President Dissanayake provided a clarification on domestic fuel prices in light of rising crude oil prices in the global market and subsequent fuel price increases in other countries, triggered by the ongoing crisis in the Middle East.
The President highlighted that the Ceylon Petroleum Corporation (CPC) currently supplies 57% of the country’s fuel requirements, while the remaining 43% is supplied by the private sector.
He further noted that private sector suppliers have requested pricing that reflects current global market rates for the fuel they import.
Accordingly, the President emphasised that a decisive decision on fuel price adjustments must be reached as expeditiously as possible to ensure the continuity of the national fuel supply.
Addressing the Parliament, the President stated that the current pricing formula dictates that for every one-dollar increase in global oil prices, domestic fuel prices must rise by Rs. 2.
He noted that the primary impact being faced is driven by the surge in global fuel prices rather than the depreciation of the rupee against the US dollar.
The President said that, globally, countries have been compelled to make difficult decisions regarding fuel costs, with price increases ranging from approximately 6% to 50%.
He added that while global prices have risen by as much as 49%, the domestic increase has been limited to 8%.
He further stated that Sri Lanka is currently facing a significant challenge in maintaining fuel supply.
The Ceylon Petroleum Corporation (CPC) accounts for 57% of the country’s fuel supply. He noted that had the CPC been the sole supplier, fluctuations could have been managed by offsetting current losses with future profits.
However, he said the private sector now controls 43% of the market, and their position is that if retail prices do not reflect the current landed cost of fuel, they will cease imports.
He added that, from a business perspective, this is a valid concern, as private companies reportedly incur a loss of approximately USD 55 million per shipment, which he said is unsustainable.
The President emphasised that the contribution of the private sector is essential to maintaining the national fuel supply, but noted that they will only participate if they are able to sell at cost-reflective prices.
He stressed that the issue of fuel pricing must, therefore, be addressed urgently.
He also pointed out that under the existing Act, companies are permitted to increase prices; however, the maximum retail price is determined by the Ceylon Petroleum Corporation.
“Although we have entered into agreements with these private companies, the necessary legislative amendments to the Act have not yet been finalised,” he noted.
Regarding government revenue, the President stated that tax income from fuel currently stands at Rs. 20 billion, compared to Rs. 240 billion generated last year from taxes on diesel.
Latest News
Heat Index likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 20 March 2026, valid for 21 March 2026
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, North-central, Southern and North-western provinces and in Monaragala, Mannar, Vavuniya and Mullaitivu districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491
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