By: Staff Writer
March 27, Colombo (LNW): The government has issued 6.8 million Taxpayer Identification Numbers (TINs) to facilitate access to public services, according to M.A. Priyanka, President of the Inland Revenue Commissioners Association. Speaking at the association’s annual conference, he emphasized that TINs will serve as digital identification codes for citizens, simplifying interactions with government agencies.
Currently, TINs cover approximately 46% of the population aged 18 and above. However, Priyanka acknowledged that the issuance process has been confusing and complex for many. He stressed the need for greater public awareness to clarify misconceptions, particularly that obtaining a TIN does not automatically mean an individual is liable to pay taxes.
State Finance Minister Ranjith Siyambalapitiya addressed public concerns, reiterating that while registration with the Inland Revenue Department (IRD) is now mandatory for individuals over 18, it does not imply tax obligations for all.
This requirement was established through Gazette Notification No. 2334/21, issued on May 31, 2023, under Section 102 of the Inland Revenue Act.
The notification identifies 14 specific categories of individuals who must register for a TIN, including professionals such as doctors, lawyers, engineers, and accountants, as well as vehicle and property owners, business registrants, and those with significant financial transactions.
Among those required to register are employees contributing over LKR 20,000 per month to provident funds, individuals receiving payments exceeding LKR 100,000 monthly or LKR 1.2 million annually, and those obtaining building plan approvals from local authorities.
Despite the government’s push, several tax experts have raised legal concerns. Former Deputy Commissioner General of IRD Tax Policy, N.M.M. Mifly, argued that the mandate to register all individuals over 18 lacks legal backing under Section 102 of the Inland Revenue Act.
He pointed out that only the IRD Commissioner-General has the authority to determine who qualifies for registration, and citizens could challenge this requirement in court.
Mifly further clarified that holding a TIN does not necessarily mean a person must pay taxes but noted that it will be beneficial in the long run. As the government digitalizes public services, TINs will become an integral part of a unified system, streamlining access to various services and transactions.
