The Inland Revenue Department has collected approximately 61% of its Rs. 2,402 billion tax revenue target for 2026, marking a 16% increase compared to the previous year, according to the Tax Commissioner.
The Inland Revenue Department (IRD) has achieved significant progress toward meeting its annual revenue collection goals, with the Commissioner of Tax Policy and Law, Nandana Kumar, reporting that around 61% of the Rs. 2,402 billion target for 2026 has been collected to date. This progress represents a notable 16% increase in revenue collection when compared to the same period in the previous year, suggesting improved tax compliance and collection efficiency.
The department has attributed this performance to deliberate efforts aimed at expanding the tax base across the country. These initiatives have resulted in the registration of approximately 1.2 million individual income tax files, a figure that encompasses both voluntary registrations and mandatory registrations by taxpayers. Additionally, more than 130,000 companies have registered for tax purposes as part of these expansion efforts.
Kumar expressed confidence that the IRD would be able to fully achieve its 2026 revenue target based on current collection rates and momentum. The commissioner emphasized that broadening the tax base remains a strategic priority, requiring taxpayers whose income exceeds relevant thresholds to register voluntarily. The department's multi-pronged approach to registration, which includes both incentivizing voluntary compliance and implementing mandatory registration requirements, appears to have contributed to the increased tax filing numbers and improved revenue collection performance.
