The Sri Lanka government said on Tuesday that it has decided to change five taxation laws in order to raise tax rates in order to restore government revenue to 2019 levels.
Value added taxes are likely to be included in the tax rate increase.
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According to cabinet spokesperson Bandula Gunawardena, the Inland Revenue Act No. 24 of 2017, the Value Added Tax Act No. 14 of 2002, the Telecommunication Levy Act No. 21 of 2011, the Betting and Gaming Levy Act No. 40 of 1988, and the Fiscal Management (Responsibility) Act No. 3 of 2003 were all relaxed in 2019, resulting in a 25% decrease in government revenue.
According to Gunawardena, the cabinet has authorised a proposal to create the appropriate measures to alter the aforementioned acts in order to increase government revenue.
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According to former Finance Minister Ali Sabry, Sri Lanka has lost around one million taxpayers as a result of tax cuts implemented in late 2019.
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