The Cabinet of Ministers has approved a set of amendments aimed at expediting the tax appeal process to address delays that have impeded the collection of Rs. 73 billion in taxes.
In response to the need for a more efficient system, the Cabinet has directed the Legal Draftsman to prepare a draft that will streamline and formalize the tax appeal procedure.
Presented by President Ranil Wickremesinghe in his role as Finance, Economic Stabilisation, and National Policies Minister, the proposal seeks to amend the Inland Revenue Act No. 24 of 2017.
These changes are anticipated to reduce processing delays and enhance the Government’s capability to collect taxes more promptly.
Currently, dissatisfied taxpayers can appeal to the Commissioner General of Inland Revenue, who must issue a decision within two years. If still unsatisfied, taxpayers may appeal to the Tax Appeal Commission, which is required to make a decision within 270 days of receiving the appeal. However, this process often extends to around three years, causing significant delays in tax collection.