ECONOMYNEXT – Sri Lanka’s Department of Inland Revenue has collected more than 60 percent of its target by August 31, State Minister for Finance Ranjith Siyambalapitiya said with similar performance also shown by customs.
“We have to collect taxes while the economy is contracting,” Minister Siyambalapitiya told staff of the agency.
“Our plan is to raise taxes to 15 percent of gross domestic product from 8 percent over the next few years.”
Department of Inland Revenue has been given a target of a little over 900 billion rupees for 2022.
Commissioner General of Inland Revenue D R S Hapuarachchi said he was confident of reaching the target by the year end.
Minister Siyambalapitiya separately said that the Department of Customs had also reached 60 percent of its 750 billion rupee target by August.
Sri Lanka Customs and Inland Revenue are the two largest tax collecting agencies following by the Department of Excise.
By June tax revenues were up by around 25 percent with the currency collapsing and triggering inflation of over 60 percent.
Sri Lanka’s tax revenues fell steeply after 2022 due tax cuts and narrowing of the based in a bid to close an output gap (stimulus) by government economists while the central bank accommodated the tax cuts by printing money, triggering a currency crisis and default. (Colombo/Sept26/2022)