📊 Sri Lanka’s Tax Revenue Hits All-Time High in 2024 🇱🇰📈

Sri Lanka’s Inland Revenue Department (IRD) reported its highest-ever tax collection in 2024, reaching Rs. 1,958 billion, marking a 25% increase compared to 2023.

⭕ Total tax collection: Rs. 1,958 billion (+25%).

⭕ Shortfall: Fell short of the ambitious Rs. 2,024 billion target by Rs. 66 billion.

⭕ Income tax contribution: Rs. 1,023.2 billion (52% of total collection).

The increase of Rs. 392.7 billion from 2023, driven primarily by policy changes rather than improvements in operational efficiency. Key changes driving revenue growth:

⭕ Introduction of an 18% VAT from January 2024, + removing previous exemptions.

⭕ The first half of the 2022/2023 tax year operated under 18% maximum PAYE thresholds, now increased to 36%.

While the record-breaking revenue is a positive milestone, Sri Lanka still needs to expand its tax base, bring more people into the tax net, and address gaps in the IRD's operational effectiveness.

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