IRD moves to widen tax net as revenue collection reaches half-year target

The Inland Revenue Department (IRD) has introduced several amendments to the country’s tax administration framework aimed at identifying individuals liable to pay taxes and broadening Sri Lanka’s tax base, Commissioner General of Inland Revenue Rukdevi Fernando said.

Addressing the inaugural session of a special media workshop on the amendments introduced under the Inland Revenue (Amendment) Act, No. 11 of 2026, held at the IRD headquarters yesterday (23), Fernando said the new legislation had been certified on June 3, 2026.

She said the amendments made to the Inland Revenue Act, No. 24 of 2017, are intended to streamline and strengthen the tax net, enabling the Department to improve tax compliance and ensure a fairer system of revenue collection. Fernando revealed that the Ministry of Finance has set an ambitious tax revenue target of Rs. 2,401 billion for 2026, adding that nearly 50 percent of the target has already been achieved during the first half of the year.

Providing an update on tax registrations, the Commissioner General said the Department currently maintains approximately 1.3 million individual income tax files and around 130,000 company tax files. She stressed that the IRD remains committed to expanding the country’s tax base further and ensuring that taxes are collected equitably from all taxpayers. According to Fernando, policymakers have already drafted a number of legislative amendments required to strengthen the tax administration system, with most of them having been approved by Parliament. Measures are currently underway to secure the passage of the remaining amendments, she added.

The Commissioner General noted that the reforms are designed not only to improve tax collection but also to enhance transparency and bring more eligible taxpayers into the formal tax system. Senior Deputy Commissioners and Deputy Commissioners attached to the Tax Policy Division of the Inland Revenue Department also participated in the workshop and shared their views on the latest amendments and the Department’s ongoing efforts to modernize tax administration and improve compliance.

Source: Daily News