In a bid to strengthen its revenue base and ensure broader tax compliance, Sri Lanka’s State Minister of Finance, Ranjith Siyambalapitiya, announced plans to levy taxes on 14 sectors that had previously been exempt. This decision marks a significant policy shift aimed at enhancing fiscal discipline and boosting government revenues amidst economic challenges.
The government has identified sectors such as large-scale tuition classes, private schools, private medical services, engineering services, and surveying services among others. These sectors, previously overlooked for tax obligations, will now be required to register and comply with tax regulations.
The Inland Revenue Department has initiated inquiries into the income and tax status of entities within these sectors. This proactive approach seeks to ensure that all businesses and service providers adhere to their tax responsibilities.
Minister Siyambalapitiya emphasized that the government is committed to eliminating tax evasion and ensuring fairness in taxation. He highlighted the unprecedented attention given to tax compliance, signaling a rigorous enforcement strategy.
By broadening the tax base, the government aims to significantly increase revenue collection. This move is seen as crucial for funding public services, infrastructure development, and economic recovery efforts.
The announcement is expected to impact businesses and service providers in the identified sectors, prompting them to prepare for compliance with new tax requirements. It may also lead to adjustments in pricing and operations to accommodate tax liabilities.
The imposition of taxes on previously untaxed sectors is part of broader efforts to strengthen fiscal policies and achieve sustainable economic growth. It reflects Sri Lanka’s commitment to financial stability and prudent economic management.
Sri Lanka’s decision to impose taxes on 14 previously untaxed sectors underscores its proactive approach to fiscal management and revenue generation. As the government moves forward with implementation, attention will be focused on ensuring smooth transitions for businesses while reinforcing the country’s tax framework.
This initiative is expected to contribute positively to Sri Lanka’s economic resilience and capacity to meet development goals amidst global uncertainties.
