Government faces daunting task of raising estimated total revenue
The government is facing daunting task of raising estimated total revenue of Rs. 3.4 trillion for this year by increasing tax income by 69 per cent in the wake of the failure to fully realise revenue-enhancement measures suggested by the International Monetary Fund (IMF).
All taxes on external trade structure except customs import duty declined in the first four months compared to the same period of 2022.
Taxes on external trade decreased by 13.3 per cent to Rs.108.5 billion in the four months of 2023 from Rs.125.2 billion in 2022, Finance Ministry data shows.
The lack of time specified targets given to revenue collection authorities has hindered tax collection efforts of officials who are without any motivation.
It makes more difficult in raising tax revenue to Rs.3.13 trillion this year from Rs.1.852 trillion last year, a senior Ministry official said.
The downfall of the economy by the end of the first quarter 2023 was -11.5 per cent compared to – 0.5 per cent in the same period in 2022, the Finance Ministry fiscal position report indicated.
This was an indication of the economic contraction sharply in 2023 in comparison to 2022 and is projected to recover again by end 2023.
The government’s revenue of Rs.820 billion in the first four months this year was only 24.1 per cent of the total estimated revenue of Rs.3.13 trillion, the Ministry’s latest fiscal position report revealed.
Accordingly it has become a difficult and impossible task for the government to achieve the expected revenue
target this year, official financial projections forecasted.
Despite the not so satisfactory overall revenue performance, tax revenue increased by a significant 36.6 per cent to Rs.742.6 billion in the first four months of 2023 achieving 23.7 per cent of Rs.3.13 trillion annual estimate for 2023.
This was mainly benefiting from higher revenue performance in VAT, income tax, excise and revenue from Social Security Contribution Levy introduced in October 2022, reports said.
However, revenue from CESS, SCL and PAL decreased in the first four months of 2023 compared to the same period of 2022.
Non-tax revenue declined by 11.2 per cent to Rs.77.5 billion mainly due to the non-receipt of Central Bank profits which amounted to Rs.30 billion in the first four months of 2022.
Meanwhile, fines, fees and charges increased significantly by 73.4 per cent to Rs.39.6 billion in the first four months of 2023 from Rs.22.9 billion in the same period of 2022 owing to the fees and charges revision introduced under the budget 2023.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!