• Sri Lanka's state revenue from income taxes rose by 16.3% to Rs 624.7 billion in the first eight months of 2024 compared to Rs 537.2 billion in 2023.

Sri Lanka's state revenue from income taxes surged by 16.3% to Rs 624.7 billion in the first eight months of 2024, compared to Rs 537.2 billion in the same period of 2023, as reported by the Finance Ministry's Pre-election Budgetary Position report. This growth is attributed to recent tax policy changes affecting personal and corporate income tax (CIT), advance personal income tax (APIT), and withholding tax (WHT), alongside enhanced tax administration measures. The treasury has mandated financial institutions to provide detailed taxpayer transaction information to the Inland Revenue Department (IRD) and has made electronic tax filing compulsory for individual income tax payers. Regular information exchanges between individuals, including government agencies, and the Commissioner General of Inland Revenue will also be required, with allowable deductions for expenses for tax purposes. Notably, revenue from APIT rose significantly by 32.6% to Rs 31.7 billion, up from Rs 23.9 billion, while WHT on interest revenue increased by 16% to Rs 113.4 billion, compared to Rs 97.8 billion in the previous year.

Income tax revenue surges 16.3% in 2024 | The Morning