Know your rights, play your role: Powering our nation’s progress

SRI Lanka’s tax story is deeply rooted in its history, stretching back to ancient kingdoms where rulers collected taxes not just in money, but through labour, crops, and goods reflecting a system closely tied to daily life.

- By Dr. Nadee Dissanayake

The colonial period introduced more formal tax systems, setting the stage for modern administration. After gaining independence, Sri Lanka embarked on a path of reform to create a clearer, more efficient tax structure. In recent decades, the focus has shifted from strict enforcement to a more human-centred approach one that values transparency, fairness, and building trust with taxpayers.

In 2023, the Inland Revenue Department introduced the Taxpayer Charter a breakthrough step that brings greater transparency and fairness to Sri Lanka’s tax system, making it easier for people to understand and trust the process. This Charter goes beyond rules, it sets a clear promise of fairness and respect between taxpayers and tax officials. By defining rights and responsibilities, it fosters transparency and trust, encouraging citizens to engage with the tax system willingly rather than out of fear. Through streamlined processes, better education, and open communication, the Charter nurtures a spirit of cooperation and voluntary compliance. This approach not only enhances government revenue but also builds stronger citizen-government relations, supporting long-term economic growth and greater social inclusion.

Why knowing our tax rights makes a difference?

When taxpayers are aware of their rights, they feel empowered to engage openly with tax officials, voice concerns without fear, and expect fair treatment. This openness helps break down barriers of suspicion and creates a more positive, cooperative relationship. On the other hand, when taxpayers clearly understand their obligations, such as timely and accurate filing and payment, they can avoid unnecessary penalties and tax related complications. This willingness to comply reduces the need for enforcement actions, benefiting both taxpayers and the tax administration.