Supporters of Gotabaya Rajapaksa gather for a presidential election rally in Bandaragama on Nov. 3. (Photo: AFP)
In its first cabinet meeting held in November, Sri Lanka’s caretaker government formed by newly elected President Gotabaya Rajapaksa took drastic steps to reduce people’s tax burden.
Tax cuts were among the major promises to voters during the presidential election campaign. Politicians were ready to reduce the tax burden on the poor as well as on present and future entrepreneurs.
One may think that these proposals were made with one eye on the parliamentary elections due within the next four to five months. Are they only temporary measures to keep the electorate guessing about how Sri Lanka can pay its international debt after these tax relaxations?