Former Deputy Leader of the United National Party, MP Ravi Karunanayake, has stressed that tax policies should be designed with humane considerations while maintaining government revenue.
Speaking to the media, he noted that although fiscal discipline and saving funds are important, such measures should not place excessive pressure on the public.
Karunanayake pointed out that out of an estimated 7 million people in the workforce, only around 2 to 2.1 million are currently within the income tax system.
He suggested that reforms to tax structures—particularly reducing higher tax rates—could encourage compliance and improve overall revenue collection.
The MP proposed that reducing top tax rates from around 36% to a lower range, such as 20%–24%, could help create a more balanced and sustainable system.
He emphasised that any such reforms should be carefully structured to ensure they generate sufficient revenue while easing the burden on taxpayers during challenging economic conditions.
