IRD warns of more revenue loss; urgent tax reforms not done By Damith Wickramasekara View(s): View(s):The Government continues to suffer colossal losses in tax revenue due to the 2019 decision to remove and reduce many taxes, and the situation will only become worse if urgent tax reforms are not done, officers of the Inland Revenue Department (IRD) warn. The Government’s tax cuts in 2019 had cost the IRD approximately Rs601 billion in tax revenue, Mr Udayasiri noted. It also reduced Value Added Tax (VAT) from 12% to 8%. The IRSU submitted its proposals calling for urgent tax reforms to recover at least some of the lost tax revenue, including proposals to reintroduce some of the taxes, he further remarked. State Minister Semasinghe meanwhile, conceded that the Government had lost billions owing to the 2019 tax cuts.

Source: Sunday Times October 31, 2021 00:40 UTC