• Sri Lanka's tax collection for January to August 2024 increased by 28.5%, reaching Rs. 1,229,245 million compared to Rs. 956,418 million in the same period of 2023, driven by new tax policies, economic improvement, and better tax administration.
• Corporate and non-corporate income taxes rose by 17%, VAT increased by 52%, while the betting and gaming levy surged by 230%. The Inland Revenue Department exceeded its targets for both the first quarter and first half of the year, with an annual target of Rs. 2,024 billion for 2024.

Sri Lanka’s tax collection for 2024 has seen a notable increase of 30% compared to the previous year, driven by new tax policies and improved economic conditions, according to the Inland Revenue Department (IRD). Between January and August 2024, the total tax revenue amounted to Rs. 1,229,245 million, reflecting a 28.5% rise from the Rs. 956,418 million collected during the same period in 2023. This surge in tax revenue is attributed to factors such as new tax measures, better economic performance, and enhanced efficiency in tax administration. Notably, corporate and non-corporate income tax collections grew by 17% year-on-year to Rs. 624,439 million, while value-added tax (VAT) collections saw a significant 52% increase, reaching Rs. 468,863 million. Additionally, the betting and gaming levy experienced a remarkable 230% rise to Rs. 11,355 million, though the share transaction levy decreased by 23% to Rs. 1,453 million.

The IRD also reported strong collections in the second half of the year, with Rs. 327 billion collected in July and August, following Rs. 902 billion collected in the first half. The first-half target of Rs. 826 billion was exceeded, as IRD managed to collect Rs. 902 billion, with Rs. 430 billion of that total collected in the first quarter alone, surpassing their first-quarter target of Rs. 381 billion. The IRD has been set an ambitious annual target of Rs. 2,024 billion for 2024.

AS AT THE END OF AUGUST: Tax gains up by 30% | The Morning