November 02, Colombo (LNW): The Ministry of Finance has reported a notable rise in government revenue, excluding grants, during the first six months of 2025 compared with the same period last year.
According to the ministry’s latest figures, total revenue for the first half of the year reached Rs. 2,321.7 billion, marking a 24.8 per cent increase from Rs. 1,860.6 billion recorded during the first half of 2024.
Tax income accounted for the majority of this growth. Revenue generated through taxation rose by 25.9 per cent to Rs. 2,151.1 billion, up from Rs. 1,709.3 billion a year earlier. The report attributes the improvement to higher collections from several key sources, including excise duties, customs levies, and value-added tax (VAT).
Excise duty on motor vehicles showed the most dramatic increase, climbing by 335.6 per cent—or Rs. 99.5 billion—reflecting both renewed import activity and revisions to tax rates. VAT receipts grew by 27.6 per cent, adding an additional Rs. 170.4 billion to the treasury.
Other major contributors included customs import duties, which rose by 92.7 per cent (Rs. 45.2 billion), and income tax, which increased by 9.2 per cent (Rs. 41.3 billion). Special commodity taxes expanded by 70.5 per cent (Rs. 32.1 billion), while social security contributions advanced by 17.7 per cent (Rs. 22.3 billion). Revenue from excise duties on petroleum and liquor also rose—by 15.5 per cent (Rs. 15 billion) and 9.2 per cent (Rs. 9.1 billion) respectively. The CESS levy brought in 9.3 per cent more revenue, equivalent to Rs. 3.5 billion.
The Ministry of Finance attributed the overall increase to stronger economic activity, improved tax administration, and policy adjustments aimed at broadening the government’s revenue base while maintaining fiscal stability.
