The Inland Revenue Department (IRD) has revealed that approximately four million individuals in Sri Lanka have still not obtained their Taxpayer Identification Numbers (TIN), raising fresh concerns about the country's efforts to broaden its tax base and improve revenue collection.
A Significant Gap in Tax Registration
Despite ongoing government drives to bring more citizens into the formal tax system, the IRD's disclosure highlights a substantial portion of the population that remains outside the registered taxpayer framework. The TIN is a mandatory identifier required for a range of financial and legal transactions in the country.
The revelation comes at a critical time for Sri Lanka, which continues to work towards meeting fiscal targets set under its International Monetary Fund (IMF) programme, a cornerstone of the island nation's economic recovery following its worst financial crisis in decades.
Why TIN Registration Matters
The TIN system is central to the government's strategy of expanding the tax net and reducing reliance on borrowing to fund public expenditure. Authorities have made TIN registration compulsory for a growing list of activities, including:
- Opening and maintaining bank accounts above certain thresholds
- Registering motor vehicles
- Obtaining licences and permits
- Engaging in property transactions
By linking everyday financial activities to tax registration, the IRD aims to ensure that eligible citizens and businesses are captured within the revenue system.
Calls for Greater Compliance
The IRD has urged all eligible individuals who have not yet registered to do so without delay, warning that non-compliance could result in penalties and complications in carrying out routine financial and administrative transactions.
The department continues to stress that expanding the registered taxpayer base is essential to ensuring a fair and sustainable revenue system that supports national development.
Tax analysts have long argued that Sri Lanka's low tax-to-GDP ratio is partly a consequence of widespread non-registration and underreporting. Bringing the remaining four million individuals into the system could significantly bolster government revenues and reduce the fiscal pressures that have strained public finances in recent years.
The IRD has indicated it will continue awareness campaigns and enforcement measures to accelerate TIN registration across the country.
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goverment wants tax but makes the process so complicated lah
how many of those 4mn even know what a TIN is honestly
4 million people and IRD only warning now? what were they doing all this time
exactly, they had years to sort this out, now suddenly panic