Tax revenue reaches record high but falls short of 2024 target

4 January 2025 09:23 am Views - 2120

Sri Lanka’s tax revenue reached an alltime high in 2024, with the Inland Revenue Department (IRD) collecting Rs.1,958 billion, a 25 percent jump from the previous year. However, despite the strong growth, the collection fell short of the government’s ambitious Rs.2,024 billion target.

The increase, Rs.392.7 billion more than in 2023, was largely driven by higher income tax collections, which accounted for Rs.1,023.2 billion.

The value-added tax brought in Rs.714.7 billion, while the Social Security Contribution Tax added Rs.187 billion. Other contributions included Rs.14.9 billion from betting and gaming, Rs.3.1 billion from stock transactions and Rs.271 million from various other taxes. The IRD also transferred Rs.14.8 billion to the Provincial Councils.

“We are grateful to the taxpayers who have met their obligations for the sake of the country and common good,” IRD Commissioner General Sepalika Chandrasekara said in a statement.

Tax increases have been a key part of the government’s economic recovery efforts, especially under its programme with the International Monetary Fund.