IRD targets record revenue for 2026

A historic revenue goal of Rs. 2,401 billion is set for the Inland Revenue Department (IRD) in 2026, following a milestone 2025 where collections reached an unprecedented Rs. 2,203 billion.

IRD Deputy Commissioner General B.K.S. Shantha informed The Sunday Morning Business that this new target aims to eclipse the previous record, which stands as the highest in the department's 93-year existence.

Revenue collection in 2025 surpassed initial expectations, totalling Rs. 2,203 billion by year-end. This figure represents a Rs. 33 billion surplus over the original target and a 15% year-over-year growth compared to 2024.

Broad increases in collections across various sectors fueled this performance, with a notable shift toward voluntary tax compliance. This improvement occurred without raising tax rates, driven instead by a greater willingness among the public to fulfil tax obligations and more proactive efforts by the department to identify and collect from liable taxpayers.

Evolving societal attitudes toward taxation, refined fiscal policies, modernised administration, and a general economic recovery served as the primary catalysts for the record-breaking results in 2025.

Source: HiruNews