Government registers 14 new fields for mandatory tax payments
In a bid to increase the tax revenue, the government has registered 14 fields, which were previously overlooked, for mandatory tax payments, Finance State Minister Ranjith Siyambalapitiya announced.
The private schools, private tutoring classes, large-scale private medical services, engineering services, legal services and survey services are among the newly registered fields subjected to the mandatory tax payments.
To ensure compliance, the Inland Revenue Department (IRD) is currently conducting stringent investigations into the incomes of the newly registered fields.
The measures are part of the government’s effort to ensure no field escapes taxation, according to Siyambalapitiya.
In a statement to the media, Siyambalapitiya highlighted that the ongoing investigations by the IRD have helped the government increase its revenue from 8.3 percent to over 11 percent, as a percentage of GDP, while helping to maintain a positive figure in the primary account.
Moreover, he highlighted the need to address the issues, where the businesses under-report their incomes and overstate their expenses to the IRD.
The government would also implement the Revenue Administration Management Information System (RAMIS) project nationwide, he said.
