Sri Lanka Proposes Fines, Jail Time for TIN Non-Compliance

The Sri Lankan government is taking decisive action to bolster tax revenue and broaden the tax base. These proposed amendments to the Inland Revenue Act signal a firm stance against tax evasion and non-compliance. By mandating Tax Identification Numbers (TINs) for all citizens over 18 and imposing stricter penalties for non-filers, the Department of Inland Revenue aims to ensure greater fiscal responsibility across the nation.

The objective is clear: to increase the number of individuals contributing to the national exchequer and to achieve the ambitious target of 20% of GDP in tax revenue. This move is crucial for funding public services and ensuring the country's economic stability. The proposed penalties, including a significant fine and potential imprisonment, underscore the seriousness with which these measures are being treated.

“

The amendments are aimed at increasing the tax-paying population and reaching a tax revenue target of twenty percent of the gross domestic product.

This initiative reflects a broader effort to strengthen the country's financial health. While some may view these measures as stringent, they are a necessary step towards building a more robust and self-sufficient economy. The Inland Revenue Department's commitment to transparency and compliance is paramount in achieving these national economic goals.

“

Those found guilty under this offense could face a fine of four hundred thousand rupees and a six-month prison sentence.