Parliament Calls for Wider Tax Base and Faster Digitalisation of Revenue System
August 10, Colombo (LNW): Sri Lanka needs to broaden its tax-paying population, strengthen compliance and accelerate the digital transformation of revenue collection, the Parliamentary Committee on Ways and Means has said.
The issue was discussed at a committee meeting held in Parliament under the chairmanship of Parliamentarian Wijesiri Basnayake, with senior officials from the Ministry of Finance, Planning and Economic Development and the Inland Revenue Department taking part.
Members reviewed the Government’s tax strategy for 2026, examining revenue collected up to June 30, projected income, performance across different categories of taxation and the size of the existing taxpayer base. The level of compliance among registered taxpayers was also considered.
According to the Department of Communication of Parliament, officials and committee members also assessed progress on the Revenue Administration Management Information System (RAMIS), the taxation of digital services and the possible application of newer technologies to make tax administration more efficient.
Officials told the committee that recent changes to tax policy and revenue management had contributed to greater stability in the country’s fiscal position. However, committee members stressed that maintaining this improvement would require continued reforms rather than relying solely on existing measures.
Greater reliance on online services was identified as a key priority. The committee called for improved information-sharing between Government institutions and further integration of digital platforms to make registration, filing and payment of taxes easier and more efficient.
The meeting also highlighted several structural obstacles facing the revenue authorities. These included the difficulty of bringing informal economic activity within the tax system, outdated technological infrastructure, fragmented data and the need to develop a larger pool of specialised personnel capable of managing increasingly complex tax systems.
The committee further examined plans to upgrade RAMIS and expand electronic facilities for taxpayer registration, return submission and payments.
Members stressed that a broader and more efficient tax system would be essential for strengthening Government revenue while improving transparency and reducing the administrative burden on both taxpayers and revenue authorities.
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