In a recent meeting with Finance State Minister Shehan Semasinghe on January 3rd, Ms. Kanni Wignaraja, the UN Assistant Secretary General and UNDP Regional Director, underscored the crucial role of simplifying the taxpayer registration process as the key factor in expanding Sri Lanka’s tax base and increasing the number of taxpayers.
Ms. Wignaraja emphasized the necessity of digitizing the taxpayer registration process to enhance voluntary tax compliance. She suggested that granting every individual obtaining a Tax Identification Number (TIN) exemption from income tax liability would incentivize the public to promptly register for a TIN.
Drawing attention to successful tax policy reforms in Bangladesh, previously burdened with corruption allegations, Ms. Wignaraja highlighted the positive impact of digital transformation and the extension of the tax system to regional levels. These measures contributed to the increased productivity and efficiency of Bangladesh’s National Revenue Board.
State Minister Semasinghe acknowledged the Sri Lankan government’s efforts to digitalize the tax system, incorporating District Secretariats. He also emphasized that, amid ongoing rigorous reforms, no specific group can be granted relief at the moment.
Addressing the debt restructuring process, State Minister Semasinghe expressed gratitude for the support provided by global agencies. The discussion further delved into ongoing social dialogues on the Value-Added Tax (VAT), with a focus on educating the public about the new VAT hike, taxpayer registration, TIN registration, and clarifying the services and goods exempted from VAT.
