Rising incomes help improve Sri Lanka tax revenue
ECONOMYNEXT – Sri Lankan government revenue generated from Pay-As-You- Earn (PAYE) tax increased by 18.6 percent to Rs. 22.4 billion in the eight months to August 2017 from a year ago, according to the finance ministry.
This was because employee incomes rose and tax administration became more efficient, according to the finance ministry’s Fiscal Management Report – 2018.
PAYE revenue increased “due to improved tax administration and enhanced high wage employment in high earning categories such as professional services,” it said.
The report said the number of people especially in high earning categories such as managers, senior officials, and technicians in sectors like information and communication, construction, manufacturing, education, health and social services, whole sale and retail trade was rising.
Improvement in revenue administration via the online application known as RAMIS of the Inland Revenue Department also helped improve the tax collection mechanism..
(COLOMBO, November 16, 2017)