• 1: New tax policies, economic recovery boost government coffers recording Rs. 1,229 b: IRD
• 2: Corporate and VAT collections drive growth, while gambling levy sees significant increase

Sri Lanka’s tax collection for 2024 as at the end of August has increased by 30% compared to the previous year, due to new tax policies and improved economic conditions in the country, The Inland Revenue Department (IRD) said.

According to a statement by IRD, the total tax revenue collected from January to August 2024 amounted to Rs. 1,229,245 million a 28.5% increase from the Rs. 956,418 million collected during the corresponding period in 2023.

IRD said that the increased tax revenue collection can be attributed to several factors, including new tax policies, a gradual improvement in the country’s economic situation, and enhanced tax administration efficiency.

The collection of corporate and non-corporate income tax increased by 17% year-on-year to Rs. 624,439 million, while value added tax (VAT) collection increased by 52% to Rs. 468,863 million.

A significant increase was seen in the betting and gaming levy as it increased by about 230% year-on-year to Rs. 11,355 million as of the end of August, however, the share transaction levy collection decreased by 23% to Rs. 1,453 million.

Figures also show that the state revenue collecting agency has collected Rs. 327 billion in the months of July and August after collecting Rs. 902 billion in the first half of the year, while its target for first half was Rs. 826 billion.

Similarly, IRD collected Rs. 430 billion of their target of Rs. 381 billion in the first quarter of the year; IRD is given an annual target of Rs. 2,024 billion.