In a significant achievement, the Inland Revenue Department (IRD) of Sri Lanka has surpassed its highest-ever tax revenue target, reaching Rs. 1,550.6 billion in 2023. This remarkable feat exceeds the set revenue target of Rs. 1,492 billion, representing 104 percent of the designated goal for the year.
Spearheading this success, Deputy Commissioner General of the Inland Revenue Department, Saman Shantha, emphasized the importance of obtaining the Taxpayer Identification Number (TIN) certificate, particularly for individuals over 18 years of age. Contrary to common misconceptions, registering for a TIN does not imply an obligation to pay taxes unless an individual earns a fixed annual income exceeding Rs. 1.2 million.
Since the commencement of issuing TIN certificates for adults on January 1, the department has already issued over 50,000 certificates within a short period. This surge in applications underscores public awareness and the eagerness of citizens to comply with tax regulations.
Recognizing the overwhelming demand for TIN registration, the Inland Revenue Department plans to allocate additional officers to expedite the issuance process. Typically, it takes 2 to 3 days to verify and process TIN applications, a timeframe that will be optimized with enhanced resources.
Looking ahead, the department aims to identify and categorize registered groups over the next two months. Moreover, the target tax revenue for 2024 is set at Rs. 2,024 billion, reflecting ambitious yet attainable goals.
The significant revenue growth achieved in 2023 underscores the department’s effectiveness in tax collection and its contribution to the government’s financial stability. Notably, there was a substantial increase of 80 percent in tax revenue compared to 2022, with impressive growth rates recorded across various tax categories.
In particular, Corporate and Non-Corporate Income Tax saw a notable 25 percent growth, while Value Added Tax (VAT) experienced a remarkable surge of 59 percent. Advance Personal Income Tax and Advance Income Tax witnessed staggering growth rates of 473 percent and 684 percent, respectively, signaling a robust performance by the Inland Revenue Department in 2023.