Inland Revenue set to suffer another blow on tax collection

Sri Lanka’s revenue collection which has suffered multiple blows since President Gotabaya Rajapaksa was elected is set to suffer another setback, a key trade union in the Inland Revenue Department has warned.

This is due to proposed changes in the Tax collection system where the Inland Revenue will be kept out of the VAT collection through a new bill to be passed in Parliament.

Accordingly, VAT from five key areas – tobacco, liquor, Telecom, vehicles and gaming which was done by the IRD will be taken away.

last year due to the change of tax policies the government lost revenue of Rs 319 billion in addition the government suffered a revenue loss amounting to Rs 65 billion due to the COVID 19 situation.

The Inland Revenue Service Union has made representations to the President and Prime Minister regarding the matter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here