Govt. expects tax culture shift with Budget 2025

The government anticipates a positive transformation in the country’s taxpaying culture with Budget 2025, according to Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma.

“We could see last year that tax compliance in terms of submissions was relatively low. So, we expect that transition to take place in the taxpaying culture as well,” he said.

He made these remarks at the KPMG Budget Forum held in Colombo on Monday.

He emphasised that the lack of tax compliance was not the public’s fault but rather a failure in planning and expense management.

“The previous culture we had in the country, where tax money was not put to good use and fiscal planning was poorly managed, created an excessive burden on people and businesses. That era is behind us now. Fiscal discipline has been growing and with political will, we are making changes to drive the economy to the next level,” he elaborated.

Dr. Suriyapperuma noted that Budget 2025 reflects the principles of consistency and continuity.

“That is why we did not see—or you won’t see—major deviations in our taxation approach by introducing multiple new tax items to generate revenue,” he added.

Through Budget 2025, he stressed that the government has sent a strong signal to the business community.

“We are serious about business. We value your input to continuously invest in society,” he said. (NF)