📊 Sri Lanka sees a 160% surge in taxpayers in 2023/2024 but it's only 5% of the adult population

⭕️ 868,009 people must file income reports for 2023, compared to 333,313 last year.

⭕️ This spike is due to Inland Revenue Act changes + making tax registration mandatory for all 18+ year olds.

⭕️ Even with the mandatory requirement, only 5% of Sri Lanka’s adult population (~17 million) are taxpayers.

⭕️ A media campaign about this mandatory requirement could go a long way, especially during this honeymoon period of the new NPP gov. (If the political backlash is a concern, it can be done even after the election)

⭕️ Everyone earning over Rs. 1.2 million per year is required to pay taxes, but many cash-based businesses and individuals remain outside the tax net.

⭕️ The IRD must take stronger steps to broaden the tax base, such as creating incentive systems (e.g., loyalty cards) and penalizing those avoiding taxes and registration.

#SriLanka 🇱🇰 #Tax