Government aims to improve share of direct taxes to 40%

The government aims to improve the ratio between direct and indirect taxes to 40 percent vs. 60 percent.
Finance State Minister Ranjith Siyambalapitiya this week said the government has been able to improve the direct vs. indirect tax ratio to 30 percent:70 percent so far during this year, from the 20 percent: 80 percent ratio last year, as a result of the tax reforms. 
“Our anticipation is to improve this ratio to 40 percent:60 percent by the end of this year,” he said.
In a special gazette notification issued last week, the government made it mandatory for professionals belonging to 14 categories, including doctors, engineers, chartered accountants and architects, to register themselves with the Inland Revenue Department (IRD), with effect from June 1, 2023.
However, Siyambalapitiya stressed that these individuals are not subject to pay taxes just by opening tax files at the IRD.
Moving forward, Siyambalapitiya noted that all who enter into politics would be required to be registered with the IRD. The measure is set to come into effect after the nomination period of the upcoming local government elections.
In addition, the office staff of the ministers will also be required to be registered with the IRD.
With effect from January 1, next year, all individuals above the age of 18 will be required to register with the IRD.