• Personal, corporate, advanced income and withholding taxes see growth
• Tax policy changes and improved administration boost revenue collection

Sri Lanka’s state revenue from income taxes increased by 16.3% to Rs 624.7 billion in the first eight months of 2024, the Finance Ministry said.

According to the Pre-election Budgetary Position report by the Treasury, revenue from income taxes increased notably 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.

“This is mainly due to the impact of the implemented tax policy changes on personal and corporate income tax (CIT), advance personal income tax (APIT) and withholding tax (WHT) during recent years as well as the impact of improved tax administration measures,” the report said.

The treasury said that it mandated financial institutions to submit details of individual taxpayers’ transactions to the Inland Revenue Department (IRD), making electronic tax filing mandatory for individual income tax payers.

It also stated that individuals, including government agencies, will be required to regularly exchange information with the Commissioner General of Inland Revenue, and that deductions for expenses will be allowed for tax purposes.

“Revenue from personal and corporate income taxes also increased by 16.3% in the first eight months of 2024 compared to the same period of 2023,” it added.

Meanwhile, revenue collection from APIT increased substantially by 32.6% to Rs. 31.7 billion during the first eight months of 2024 compared to Rs. 23.9 billion in the same period of 2023.

Further, revenue from WHT on interest also recorded an increase of 16% to Rs. 113.4 billion from Rs. 97.8 billion.