In a post on X ( Formerly Twitter), Premadasa said the changes would bring small and medium-sized enterprises (SMEs) into the tax net, impose higher taxes on financial services, and extend VAT to cover the digital economy.
He also noted that overall compliance requirements for businesses would increase under the new system.
Premadasa argued that these measures amount to “extraction” rather than meaningful reform, warning that economic growth cannot be achieved through increased taxation alone.
He added that businesses need sufficient space to operate and remain viable, cautioning that if they are unable to sustain themselves, the tax base itself would eventually decrease.
