Sri Lanka Eyes Simplified Tax Registration to Boost Revenue, UNDP Lends Expertise

by Zulfick Farzan 04-01-2024 | 3:38 PM

COLOMBO (News 1st); The United Nations Development Programme (UNDP) has urged Sri Lanka to prioritize simplifying new tax registrations and embracing digitization to expand its tax base and improve revenue collection.

During a meeting with State Minister of Finance Shehan Semasinghe,UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific Kanni Wignaraja emphasized the need for a streamlined taxpayer enrollment process as the primary driver for increasing tax contributions.

Wignaraja highlighted the importance of digital solutions, stating, "Digitization is essential for progress."

Drawing from her international experience, she suggested confirming that not everyone who obtains a Taxpayer Identification Number (TIN) is liable to pay tax, streamlining the process and potentially accelerating registration.

She further commended Bangladesh's tax reform efforts as a valuable model for Sri Lanka. She pointed out how Bangladesh's government revenue department transformed itself from a perception of corruption to a model of efficiency by embracing digitization and expanding its reach to the district level. This network of digitized offices, now spanning regional and district levels, serves as a successful case study for Sri Lanka, Wignaraja noted.

State Minister Semasinghe reiterated the government's commitment to digitizing the tax system.

He added that collaborating with district secretariats is another key strategy to broaden the Inland Revenue Department's reach. Recognizing the challenges of reform during such difficult times, the State Minister emphasized that fairness will be paramount.

The discussion specifically focused on VAT and highlighted the challenges of identifying VAT-exempt goods and unfair practices employed by some businesses.

The need for increased public awareness regarding the new VAT amendment, new registrations, and VAT-exempt commodities was emphasized as crucial for the reform's success.