The Inland Revenue Department (IRD) reports that 200,000 new taxpayers have been registered so far this year.
Senior Deputy Commissioner of the IRD, P. Nandana Kumara, stated that 18,000 new companies have also been registered during the same period. With this increase, the total number of individual taxpayers has now reached 1.2 million, which the IRD says reflects a strengthening tax administration. Meanwhile, excise tax registrations have risen to 30,000.
Tax Revenue Trends
According to the IRD, tax revenue, which stood at Rs. 1,025 billion in 2019, dropped significantly to Rs. 523 billion in 2020, before increasing modestly to Rs. 632 billion in 2021.
Revenue growth accelerated thereafter, with collections rising to Rs. 1,058 billion in 2022, and then sharply increasing to Rs. 1,842 billion in 2023.
In 2024, the country recorded its highest-ever tax revenue, amounting to Rs. 2,620 billion.
The department expects to meet its annual revenue target for 2025 as well.
Increase in VAT and Income Tax Revenue
Senior Deputy Commissioner Nandana Kumara noted that VAT collections have increased by 21%, while income tax revenue has risen by 14% compared to the previous year.
He further stated that the tax threshold for 2025 has been increased from Rs. 1.2 million to Rs. 1.8 million.
