Although the general government revenue of Sri Lanka dropped in the first quarter of 2019 as imports slowed down, with a fresh internet collection scheme and better enforcement, income tax profits were noticeably greater, the Treasury said. Income taxes accounted for 18 percent of complete income during the period January–April 2019, after Value Added Tax which contributed 27 percent and excise obligation which contributed 22 percent.
In the first four months of 2019, total income tax revenue improved from a year ago by 9.6 percent to 104 billion rupees, with corporate and non-corporate income tax revenue rising by 10.2 percent to 43 billion rupees. Revenue from PAYE (pay as you earn) tax risen to 18 billion rupees by 19.2 percent.
“Revenue from income tax increased with tax structure simplification, tax administration strengthening and tax audit in line with the New Inland Revenue Act as of April 2018,” the Treasury said in a study. In the first four months of 2019, the realization of income tax was 101 percent compared to the estimate due to several latest changes. Implementing the Inland Revenue Department’s internet collection scheme known as RAMIS (Revenue Management Information System) helped to boost revenue tax revenue. Also assisted was the efficient application of the fresh Inland Revenue Act as of April 01, 2018 and extended tax plates for personal income tax calculation and extended employment income tax rate.
