Tax collection arrears decline by Rs. 104 b

Tuesday, 27 August 2024 02:56 - - {{hitsCtrl.values.hits}}

Inland Revenue Department collects Rs. 47 b during 1H of 2024 from 2023 dues
Tackles tax arrears with legal compliance, seizes bank accounts of 900 taxpayers and recovers Rs. 57 b
Aims to collect Rs. 84 b by end of this year out of Rs. 188 b in tax arrears registered in 2023

The Inland Revenue Department (IRD) yesterday announced that it is actively managing tax arrears under its self-assessment system and has made significant progress in reducing tax arrears by Rs. 104 billion in the year 2024.

The department said from 1 January to 30 June 2024, the department has collected Rs. 47 billion from the outstanding balance reported as of 31 December 2023.

“This was achieved through various methods, including the seizure of bank accounts of 900 taxpayers, installment payment plans, and other legal actions,” the department said.

Additionally, it said Rs. 57 billion was recovered or reduced due to settled refunds and objections. As of 31 December 2023, the department reported a total of Rs. 1,066 billion in defaulted taxes. However, due to ongoing tax appeals, Rs. 878 billion of this amount is currently held over, reflecting the legal complexities involved in tax collection.

Under IRD’s self-assessment system, taxpayers are responsible for submitting their tax returns and paying corresponding taxes. Failure to pay the tax amount indicated on these returns results in tax arrears.

By the end of 2024, out of the Rs. 188 billion in tax arrears registered as of 31 December 2023, the department aims to collect Rs. 84 billion.