Opposition MP Harsha de Silva has claimed that public opposition and pressure from lawmakers forced the Government to retain the existing VAT registration threshold of Rs. 60 million.In a statement, de Silva criticized a proposal that would have required more businesses to register for VAT, arguing that it would have placed an unfair burden on small traders while larger tax issues remained unresolved.

He alleged that the Government had considered imposing penalties of up to Rs. 1 million on businesses that failed to register for VAT, while pointing to concerns over tax collection and compliance in other sectors.The MP said the issue was raised at the Committee on Public Finance (COPF) and in Parliament, adding that a majority of public responses received during the consultation process opposed the proposed change.While supporting efforts to broaden the tax base, de Silva argued that tax reforms must be implemented fairly and equitably.“The threshold stays at Rs. 60 million. That’s not their win. That’s yours,” he said, referring to the Government’s decision not to proceed with lowering the VAT registration threshold. (