Policy and Regulation

Mandatory Income Tax Registration Benefits National Revenue, Says Peradeniya University Professor

Senior Professor Wasantha Athukorale of Peradeniya University’s Economics and Statistics Department asserted that opposition to the mandatory income tax registration for all citizens above 18 indirectly supports tax evaders. He emphasized the significance of the Inland Revenue Department’s decision to assign a tax file and number to every citizen above 18, clarifying that having a tax number doesn’t automatically entail paying income tax.

According to Professor Athukorala, this initiative is crucial for establishing an accurate data system on citizens, enabling the identification of individuals not within the tax payment structure and those intentionally evading tax obligations. The tax number system aims to gather correct information on individuals’ income, expenses, and assets, forming the basis for the government to create an effective tax schedule.

He urged the public not to harbor unnecessary fears about the program, emphasizing that it provides a mechanism to identify tax evaders and integrate them formally into the tax-paying system. Addressing concerns about difficulties in obtaining a tax number online, particularly in rural areas, Professor Athukorala stressed that the Revenue Department should simplify the registration process to ensure accessibility for all citizens willing to obtain a tax number without complications.