Sri Lanka, Sept. 9 -- Sri Lanka's tax administration recorded a strong revenue performance in 2025. The Inland Revenue Department collected Rs. 3,221.55 billion against an estimate of Rs. 3,093.45 billion, achieving 104.14 per cent of the target. Advance Income Tax, including withholding tax, yielded Rs. 175.79 billion, of which Rs. 71.62 billion came from interest. These figures show that collection at source is an effective and dependable part of the revenue system.

Yet,the success of collection should not be measured only by the amount raised. A sound tax system must also consider the cost, difficulty and anxiety imposed on people who are willing to pay what is properly due. For many middle-income taxpayers whose only income is emplo...