Delays in Tax Resolution With the US Impacting Industry – Harsha de Silva

10-Jul-2025

.

The Minister keeps saying that discussions are ongoing with the US about the reciprocal tax imposed by America. But so far, no positive response has been received. We are aware there is a problem, and we are only asking for a solution. 

The government’s delay is directly harming our industrial sector, said Harsha de Silva, Colombo District MP from the Samagi Jana Balawegaya.

He made these remarks in Parliament on July 8, during the debate on the regulations published under the Import and Export (Control) Act.

He further stated, the Minister claims solutions have been found for issues arising from the electronic commerce framework. The government must clearly explain what these solutions are. It must refrain from presenting impractical ideas.

During vehicle imports, letters of credit issued by third countries were used. This system was in place since 2013. Now, the government is claiming this practice is illegal and is considering re-exporting those vehicles. This will cause various practical problems.

New taxes are reportedly being imposed on export services and national services of international companies. The government should understand that these taxes will mainly burden small and medium enterprises.

The Minister keeps saying that talks with the US are ongoing about the reciprocal tax, but there is still no positive outcome. We know there is a problem; we are only asking for a solution. Delays will harm industrialists.

There is much talk about the digital economy. However, starting this August, it has been decided to impose taxes on the digital economy. If policy is driven solely by taxation, how can the digital economy grow? he asked.