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ஜெனரல்
The Ministry of Finance reported a substantial 44% increase in Government revenue to Rs. 916.2 billion in the first quarter, attributing the surge to revenue-based fiscal consolidation efforts. This sharp rise reflects the Government's aggressive stance on revenue enhancement, aligning with its broader economic strategy. Notably, in 2023, Government revenue as a percentage of GDP rose to 11.1%, marking a significant uptick from 8.4% in 2022. The total Government revenue, including grants, surpassed historical levels, reaching Rs. 3,048 billion, up by 54% from Rs. 1.97 trillion in 2022. Tax revenue surged by 187% to Rs. 2,720 billion, driven by tax policy reforms and improved tax administration, including measures to broaden the tax base and enhance compliance.
Income Tax witnessed substantial growth, propelled by increases in corporate and non-corporate tax revenue, Advanced Personal Income Tax (APIT), and Withholding Tax (WHT). These increases were a result of revised tax rates, rationalized tax slabs, and reductions in tax-free thresholds implemented from January 1, 2023. Moreover, revenue from taxes on goods and services, particularly Value Added Tax (VAT), saw a significant boost due to rate hikes, reduced VAT registration thresholds, and the elimination of VAT exemptions on certain properties. The increase in revenue contributed to a rise in the tax revenue to GDP ratio by 2.5 percentage points and the non-tax revenue to GDP ratio by 0.3 percentage points, surpassing the envisaged annual estimate for 2023. With Government revenue recovering to a level just 0.8 percentage points below the pre-2019 tax policy change ratio, these developments underscore the effectiveness of recent fiscal measures in bolstering revenue streams.
