මාතෘකා
ගවේෂණය කරන්න
විදසුන්
Sri Lanka’s Revenue: What Changed Between 2021 and 2024?
Between 2021 and 2024, Sri Lanka’s government revenue and grants rose from 8.3% to 13.7% of GDP— a 65% increase in just three years. This marks a significant turnaround from the historic low of 2021, when tax cuts substantially reduced the revenue base. The latest data, from the Central Bank of Sri Lanka’s Annual Economic Review 2024, show that government revenues have not only recovered but also exceeded pre-crisis levels. The sharp rebound was driven by a series of targeted tax reforms. A breakdown of revenue sources reveals that while most major tax categories grew, Value Added Tax (VAT) alone accounted for nearly half the total increase. The Fall: What Went Wrong in 2020/2021? In 2021, Sri Lanka’s government revenue fell to a historic low of 8.3% of GDP—the lowest level since 1950. This collapse was triggered by a series of tax cuts introduced in early 2020, delivered without offsetting reforms or a clear fiscal strategy. Key policy changes in 2020 included raising the personal income tax threshold from LKR 1.2 million to LKR 3 million while reducing tax rates, and cutting corporate income tax rate from 28% to 24%, with additional concessions for sectors like construction and manufacturing. The VAT rate was reduced from 15% to 8%, and the registration threshold was increased from LKR 12 million to LKR 300 million, narrowing the tax base. The mandatory income tax deduction through the PAYE system was abolished and replaced with a voluntary Advance Personal Income Tax (APIT) scheme. Several other taxes, including the Nation Building Tax (NBT), Economic Service Charge (ESC), and Withholding tax (WHT) on domestic interest, were also removed. These policy changes had an immediate impact: the tax base contracted significantly. According to a previous analysis by PublicFinance.lk, the number of income taxpayers fell by 82%, and the number of VAT-registered businesses dropped by 72% in 2020 compared to the previous year. Government Revenue and Grants plummeted from 11.9% of GDP in 2019 to 8.3% in 2021, widening the budget deficit and increasing debt levels – which culminated in the worst economic crisis faced by Sri Lanka. The Rise: What Drove the Recovery by 2024? By 2024, Sri Lanka’s Government Revenue and Grants had climbed to 13.7% of GDP—its highest level in 15 years, though still below the pre-1996 benchmark of over 20%. This marks a significant turnaround from the 2021 low of 8.3%. In just three years, revenue rose by 1.6 times as a share of GDP and by 2.8 times in nominal terms (from LKR 1,464 billion to LKR 4,091 billion). The primary driver of this recovery was VAT, which increased from 1.7% of GDP in 2021 to 2.6% of GDP in 2024. While VAT alone grew by 2.6% percent of GDP, all other taxes combined only increased by 2.7% of GDP. Non-corporate income taxes—mainly consisting of personal income taxes recorded the second-largest increase—rising by 0.7 percentage points of GDP. Other major taxes, such as corporate income tax, tax on interest, and excise duties contributed to modest gains, each under 0.5 percentage points. Notably, taxes on international trade—including import duties, the Port and Airport Levy (PAL), and the Special Commodity Levy (SCL) declined compared to 2021. The rise in revenue was driven by targeted tax reforms aimed at restoring fiscal stability. The VAT rate was increased from 8% to 18%, while the registration threshold was lowered from LKR 300 million to LKR 60 million, and a number of exemptions were removed to widen the tax base. Personal income tax was strengthened by reducing the tax-free threshold to LKR 1.2 million, compressing slabs, and raising the top rate to 36%, alongside reintroducing mandatory PAYE. The government also raised excise duties on petroleum, cigarettes, and liquor, further boosting collections. WHT was also reinstated to cover the domestic interest component.
විදසුන්
Sri Lanka’s Revenue: What Changed Between 2021 and 2024?
Between 2021 and 2024, Sri Lanka’s government revenue and grants rose from 8.3% to 13.7% of GDP— a 65% increase in just three years. This marks a significant turnaround from the historic low of 2021, when tax cuts substantially reduced the revenue base. The latest data, from the Central Bank of Sri Lanka’s Annual Economic Review 2024, show that government revenues have not only recovered but also exceeded pre-crisis levels. The sharp rebound was driven by a series of targeted tax reforms. A breakdown of revenue sources reveals that while most major tax categories grew, Value Added Tax (VAT) alone accounted for nearly half the total increase. The Fall: What Went Wrong in 2020/2021? In 2021, Sri Lanka’s government revenue fell to a historic low of 8.3% of GDP—the lowest level since 1950. This collapse was triggered by a series of tax cuts introduced in early 2020, delivered without offsetting reforms or a clear fiscal strategy. Key policy changes in 2020 included raising the personal income tax threshold from LKR 1.2 million to LKR 3 million while reducing tax rates, and cutting corporate income tax rate from 28% to 24%, with additional concessions for sectors like construction and manufacturing. The VAT rate was reduced from 15% to 8%, and the registration threshold was increased from LKR 12 million to LKR 300 million, narrowing the tax base. The mandatory income tax deduction through the PAYE system was abolished and replaced with a voluntary Advance Personal Income Tax (APIT) scheme. Several other taxes, including the Nation Building Tax (NBT), Economic Service Charge (ESC), and Withholding tax (WHT) on domestic interest, were also removed. These policy changes had an immediate impact: the tax base contracted significantly. According to a previous analysis by PublicFinance.lk, the number of income taxpayers fell by 82%, and the number of VAT-registered businesses dropped by 72% in 2020 compared to the previous year. Government Revenue and Grants plummeted from 11.9% of GDP in 2019 to 8.3% in 2021, widening the budget deficit and increasing debt levels – which culminated in the worst economic crisis faced by Sri Lanka. The Rise: What Drove the Recovery by 2024? By 2024, Sri Lanka’s Government Revenue and Grants had climbed to 13.7% of GDP—its highest level in 15 years, though still below the pre-1996 benchmark of over 20%. This marks a significant turnaround from the 2021 low of 8.3%. In just three years, revenue rose by 1.6 times as a share of GDP and by 2.8 times in nominal terms (from LKR 1,464 billion to LKR 4,091 billion). The primary driver of this recovery was VAT, which increased from 1.7% of GDP in 2021 to 2.6% of GDP in 2024. While VAT alone grew by 2.6% percent of GDP, all other taxes combined only increased by 2.7% of GDP. Non-corporate income taxes—mainly consisting of personal income taxes recorded the second-largest increase—rising by 0.7 percentage points of GDP. Other major taxes, such as corporate income tax, tax on interest, and excise duties contributed to modest gains, each under 0.5 percentage points. Notably, taxes on international trade—including import duties, the Port and Airport Levy (PAL), and the Special Commodity Levy (SCL) declined compared to 2021. The rise in revenue was driven by targeted tax reforms aimed at restoring fiscal stability. The VAT rate was increased from 8% to 18%, while the registration threshold was lowered from LKR 300 million to LKR 60 million, and a number of exemptions were removed to widen the tax base. Personal income tax was strengthened by reducing the tax-free threshold to LKR 1.2 million, compressing slabs, and raising the top rate to 36%, alongside reintroducing mandatory PAYE. The government also raised excise duties on petroleum, cigarettes, and liquor, further boosting collections. WHT was also reinstated to cover the domestic interest component.
විදසුන්
Sri Lanka’s Revenue: What Changed Between 2021 and 2024?
Between 2021 and 2024, Sri Lanka’s government revenue and grants rose from 8.3% to 13.7% of GDP— a 65% increase in just three years. This marks a significant turnaround from the historic low of 2021, when tax cuts substantially reduced the revenue base. The latest data, from the Central Bank of Sri Lanka’s Annual Economic Review 2024, show that government revenues have not only recovered but also exceeded pre-crisis levels. The sharp rebound was driven by a series of targeted tax reforms. A breakdown of revenue sources reveals that while most major tax categories grew, Value Added Tax (VAT) alone accounted for nearly half the total increase. The Fall: What Went Wrong in 2020/2021? In 2021, Sri Lanka’s government revenue fell to a historic low of 8.3% of GDP—the lowest level since 1950. This collapse was triggered by a series of tax cuts introduced in early 2020, delivered without offsetting reforms or a clear fiscal strategy. Key policy changes in 2020 included raising the personal income tax threshold from LKR 1.2 million to LKR 3 million while reducing tax rates, and cutting corporate income tax rate from 28% to 24%, with additional concessions for sectors like construction and manufacturing. The VAT rate was reduced from 15% to 8%, and the registration threshold was increased from LKR 12 million to LKR 300 million, narrowing the tax base. The mandatory income tax deduction through the PAYE system was abolished and replaced with a voluntary Advance Personal Income Tax (APIT) scheme. Several other taxes, including the Nation Building Tax (NBT), Economic Service Charge (ESC), and Withholding tax (WHT) on domestic interest, were also removed. These policy changes had an immediate impact: the tax base contracted significantly. According to a previous analysis by PublicFinance.lk, the number of income taxpayers fell by 82%, and the number of VAT-registered businesses dropped by 72% in 2020 compared to the previous year. Government Revenue and Grants plummeted from 11.9% of GDP in 2019 to 8.3% in 2021, widening the budget deficit and increasing debt levels – which culminated in the worst economic crisis faced by Sri Lanka. The Rise: What Drove the Recovery by 2024? By 2024, Sri Lanka’s Government Revenue and Grants had climbed to 13.7% of GDP—its highest level in 15 years, though still below the pre-1996 benchmark of over 20%. This marks a significant turnaround from the 2021 low of 8.3%. In just three years, revenue rose by 1.6 times as a share of GDP and by 2.8 times in nominal terms (from LKR 1,464 billion to LKR 4,091 billion). The primary driver of this recovery was VAT, which increased from 1.7% of GDP in 2021 to 2.6% of GDP in 2024. While VAT alone grew by 2.6% percent of GDP, all other taxes combined only increased by 2.7% of GDP. Non-corporate income taxes—mainly consisting of personal income taxes recorded the second-largest increase—rising by 0.7 percentage points of GDP. Other major taxes, such as corporate income tax, tax on interest, and excise duties contributed to modest gains, each under 0.5 percentage points. Notably, taxes on international trade—including import duties, the Port and Airport Levy (PAL), and the Special Commodity Levy (SCL) declined compared to 2021. The rise in revenue was driven by targeted tax reforms aimed at restoring fiscal stability. The VAT rate was increased from 8% to 18%, while the registration threshold was lowered from LKR 300 million to LKR 60 million, and a number of exemptions were removed to widen the tax base. Personal income tax was strengthened by reducing the tax-free threshold to LKR 1.2 million, compressing slabs, and raising the top rate to 36%, alongside reintroducing mandatory PAYE. The government also raised excise duties on petroleum, cigarettes, and liquor, further boosting collections. WHT was also reinstated to cover the domestic interest component.
විදසුන්
Sri Lanka’s Revenue: What Changed Between 2021 and 2024?
Between 2021 and 2024, Sri Lanka’s government revenue and grants rose from 8.3% to 13.7% of GDP— a 65% increase in just three years. This marks a significant turnaround from the historic low of 2021, when tax cuts substantially reduced the revenue base. The latest data, from the Central Bank of Sri Lanka’s Annual Economic Review 2024, show that government revenues have not only recovered but also exceeded pre-crisis levels. The sharp rebound was driven by a series of targeted tax reforms. A breakdown of revenue sources reveals that while most major tax categories grew, Value Added Tax (VAT) alone accounted for nearly half the total increase. The Fall: What Went Wrong in 2020/2021? In 2021, Sri Lanka’s government revenue fell to a historic low of 8.3% of GDP—the lowest level since 1950. This collapse was triggered by a series of tax cuts introduced in early 2020, delivered without offsetting reforms or a clear fiscal strategy. Key policy changes in 2020 included raising the personal income tax threshold from LKR 1.2 million to LKR 3 million while reducing tax rates, and cutting corporate income tax rate from 28% to 24%, with additional concessions for sectors like construction and manufacturing. The VAT rate was reduced from 15% to 8%, and the registration threshold was increased from LKR 12 million to LKR 300 million, narrowing the tax base. The mandatory income tax deduction through the PAYE system was abolished and replaced with a voluntary Advance Personal Income Tax (APIT) scheme. Several other taxes, including the Nation Building Tax (NBT), Economic Service Charge (ESC), and Withholding tax (WHT) on domestic interest, were also removed. These policy changes had an immediate impact: the tax base contracted significantly. According to a previous analysis by PublicFinance.lk, the number of income taxpayers fell by 82%, and the number of VAT-registered businesses dropped by 72% in 2020 compared to the previous year. Government Revenue and Grants plummeted from 11.9% of GDP in 2019 to 8.3% in 2021, widening the budget deficit and increasing debt levels – which culminated in the worst economic crisis faced by Sri Lanka. The Rise: What Drove the Recovery by 2024? By 2024, Sri Lanka’s Government Revenue and Grants had climbed to 13.7% of GDP—its highest level in 15 years, though still below the pre-1996 benchmark of over 20%. This marks a significant turnaround from the 2021 low of 8.3%. In just three years, revenue rose by 1.6 times as a share of GDP and by 2.8 times in nominal terms (from LKR 1,464 billion to LKR 4,091 billion). The primary driver of this recovery was VAT, which increased from 1.7% of GDP in 2021 to 2.6% of GDP in 2024. While VAT alone grew by 2.6% percent of GDP, all other taxes combined only increased by 2.7% of GDP. Non-corporate income taxes—mainly consisting of personal income taxes recorded the second-largest increase—rising by 0.7 percentage points of GDP. Other major taxes, such as corporate income tax, tax on interest, and excise duties contributed to modest gains, each under 0.5 percentage points. Notably, taxes on international trade—including import duties, the Port and Airport Levy (PAL), and the Special Commodity Levy (SCL) declined compared to 2021. The rise in revenue was driven by targeted tax reforms aimed at restoring fiscal stability. The VAT rate was increased from 8% to 18%, while the registration threshold was lowered from LKR 300 million to LKR 60 million, and a number of exemptions were removed to widen the tax base. Personal income tax was strengthened by reducing the tax-free threshold to LKR 1.2 million, compressing slabs, and raising the top rate to 36%, alongside reintroducing mandatory PAYE. The government also raised excise duties on petroleum, cigarettes, and liquor, further boosting collections. WHT was also reinstated to cover the domestic interest component.
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රජයේ ආදායම් පිළිබඳ විදසුන් සහ විශ්ලේෂණ.
Tax revenue misses IMF target in 1st quarter!
According to the 2022 Annual Report from the Ministry of Finance, tax revenue for the first quarter of 2023 experienced a surge of 56%, amounting to LKR 578 billion. This was a increase from the LKR 370 billion collected during the same peri...
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මූලාශ්රය:
The Morning
CBSL had a day one loss of over Rs. 760 b through...
The Central Bank of Sri Lanka (CBSL) faced a Day One Loss of over Rs. 760 billion due to restructuring approximately Rs. 2.5 trillion worth of CBSL debt through the Domestic Debt Optimization (DDO) initiative.
වැඩිදුර කියවන්න
මූලාශ්රය:
Daily Ft
Govt. hikes VAT to 18% to meet revenue targets set...
The government has announced a VAT rate increase from 15% to 18% effective from January 1, 2024, to meet revenue targets set by the International Monetary Fund (IMF). Despite a significant 51% increase in tax receipts during the first nine m...
වැඩිදුර කියවන්න
මූලාශ්රය:
Daily Mirror
Excise Duty on Liquor, Wine, Beer and Fags up by 2...
වැඩිදුර කියවන්න
විදසුන් කියවන්න: ආදායම
Government revenue rose during the first...
During the first eight months of 2024, go...
Sri Lanka’s generous tax-free personal i...
Sri Lanka has the highest tax-free income...
Sri Lanka’s quick climb to the top perso...
Sri Lanka imposes its highest tax rate at...
Disparity in personal income tax burden...
Sri Lanka's personal income tax burde...
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2023 අංක 9 දරන දූෂණ විරෝධී පනත මගින් දේශප...
ශ්රී ලාංකිකයෝ දකුණු ආසියාවේ ඉහළම බදු රහ...
ශ්රී ලංකාවේ පුද්ගල ආදායම් බදු ව්&zwj...
2023 අයවැයේ ආදායම් ඉලක්කය රුපියල් බිලියන...
2024 මැයි 31 වැනි දින නිකුත් කරන ලද මුදල්...
පොලී වියදම් රාජ්ය ආදායම ගිල ගනී
2023 දී ඉතිහාසයේ පළමු වතාවට රජය සිය දළ දේ...
2023 දී රාජ්ය ආදායම 53%කින් ඉහළ ගියේ කෙ...
2022 වසරට සාපේක්ෂව රජයේ ආදායම 53% කින් (රු. බිලියන 1,062) සැලකිය යුතු...
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ජාත්යන්තර මූල්ය අරමුදලේ IV වගන්තියේ වාර්තාව - ප්...
ජාත්යන්තර මූල්ය අරමුදලේ ගිවිසුම් සංග්රහයේ IV වගන්තිය යටතේ, ජාත්යන්තර මූල්යඅරමුදල සෑම වසරකම එහි සාමාජික රටවල් සමග ද්විපාර්ශ්වික සාකච්ඡා පවත්වනුලබයි. 2021&nbs...
වැඩිදුර කියවන්න
ශ්රී ලංකාව, දකුණු ආසියානු රටවල් අතුරින් ඉහළම උද්ධ...
මෙතෙක් ඇති වූ දරුණුතම ආර්ථික අර්බුදයන්ගෙන් එකකට මුහුණ දෙමින් සිටින ශ්රී ලංකාව, මේ වන විට ශීඝ්රයෙන් ඉහළ යන උද්ධමනය අත්විඳිමින් සිටී. 2022 පෙබරවාරි මාසයේ දී වසරින් වසර උද්ධමනය 15.1% දක්වා ඉහළ ගිය අතර එය පසුගිය වසර 13ක කාලය තුල වාර්තා...
වැඩිදුර කියවන්න
පෙබරවාරි අවසන් වන විට IMF කැපවීම්වලින් 33%ක් 'ඉටු...
2024 පෙබරවාරි අවසානය වන විට, ජාත්යන්තර මූල්ය අරමුදල් (IMF) වැඩසටහන යටතේ ඉටු කළ යුතු කැපවීම්වලින් 33%ක් සපුරාලීමට ශ්රී ලංකාව අසමත් වී ඇති බව වෙරිටේ රිසර්ච්හි ‘IMF මීටරයේ’ පෙබරවාරි යාවත්කාලීන කිරීම පෙන්වා දෙයි....
වැඩිදුර කියවන්න
