ICCSL-RKMT proposes smarter tax policies, modern administration for Budget 2026

A Blueprint for Smarter Revenue Mobilisation

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Inland Revenue Head Office

Proposal 1: Tax Credit for Digitalisation and Compliance Investment THIS measure encourages enterprises, particularly small and medium-sized businesses, to modernise their operations through technology. RKMT proposes a two-year tax credit of up to 25% for investments in e-invoicing systems, ERP platforms, certified accounting software, and cybersecurity tools.

The move is designed to reward firms that invest in accuracy, transparency, and efficiency, strengthening the foundation for digital audits and real-time reporting. By reducing manual processes and data errors, this initiative will also help bridge the gap between taxpayers and administrators.

"Every rupee spent on digital compliance is an investment in national integrity," RKMT notes. "This is not just an incentive, it's a signal that Sri Lanka is ready for a new era of digital governance."

Proposal 2: Simplified Service Economy Tax Framework