Former UNP Deputy Leader and MP Ravi Karunanayake has proposed reducing tax rates while expanding the number of businesses and individuals within the tax system to address tax inequities and increase government revenue.
He suggested reducing the current corporate income tax rate of 30% to between 15% and 17.5%, arguing that a broader tax base could generate stronger state revenue in the long term.
Karunanayake attributed recent tax increases to the economic collapse during former President Gotabaya Rajapaksa’s administration, which severely weakened government revenue.
He stressed the need for a balanced approach that maintains fiscal responsibility while encouraging investment and business activity.
