Sri Lanka income tax revenue sharply higher in first quarter
Jul 02, 2019 11:28 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Although Sri Lanka’s overall government revenue fell in the first quarter of 2019 as imports slowed down, income tax gains were noticeably higher with a new online collection system and better enforcement, the Treasury said.
Income taxes accounted for 18 percent of total revenue during the January – April 2019 period, after Value Added Tax which contributed 27 percent and excise duty which brought in 22 percent.
Total revenue from income tax increased by 9.6 percent to 104 billion rupees in the first four months of 2019 from a year ago with revenue generated from corporate and non-corporate income tax up 10.2 percent to 43 billion rupees.
Revenue generated from PAYE (pay as you earn) tax increased by 19.2 percent to 18 billion rupees.
“Revenue from income tax increased with the simplification of tax structure, strengthening tax administration and tax audit in line with the New Inland Revenue Act effective from April 2018,” the Treasury said in a report.
The realization of income tax in the first four months of 2019 was 101 percent as against the estimate owing to several recent improvements.
The implementation of the online collection system known as RAMIS (Revenue Administration Management Information System) of the Inland Revenue Department helped increase income tax revenue.
Effective implementation of the new Inland Revenue Act effective from April 01, 2018 and broadened tax slabs for the calculation of personal income tax and widened tax rate for employment income also helped.
And there was increased revenue from corporate and non-corporate taxes, PAYE tax and Economic Service Charge, which accounted for 84.0 percent of total income tax revenue;
(COLOMBO, 02 July, 2019)