By: Staff Writer
June 09, Colombo (LNW): In a landmark initiative aimed at reshaping public engagement with taxation, the International Chamber of Commerce Sri Lanka (ICCSL) has released the country’s first national survey on public awareness of the Taxpayer Charter.
The survey’s findings, presented on May 28, 2025, underscore a pressing need to strengthen tax education and build public trust in Sri Lanka’s tax system.
The survey, conducted by the ICCSL Committee on Research, Knowledge Mobilisation and Taxation, was led by Prof. B.W.R. Damayanthi, Head of ICT at the University of Sri Jayewardenepura, alongside Dr. Nadee Dissanayake, Deputy Commissioner General of the Inland Revenue Department and Chair of the ICCSL Committee.
The final report was formally handed over to ICCSL Chairman Shanil Fernando and presented to board members during a special session at the Chamber’s headquarters.
While general awareness of the Taxpayer Charter exists, the study revealed a deeper concern—most respondents lacked a clear understanding of how to apply their rights and responsibilities in real-life scenarios.
“People aren’t just looking for information—they’re trying to make sense of a system that feels intimidating and complex,” said Prof. Damayanthi. “Their interpretation of tax obligations depends on their background, profession, and past experiences.”
Dr. Dissanayake highlighted that raising awareness is only the first step. “Knowing your rights is one thing, but knowing how to confidently act on them within a fair, respectful system is another. That’s where we have work to do.”
Sri Lanka’s tax-to-GDP ratio has historically remained low, hovering around 8–10%—one of the lowest in South Asia. Experts attribute this to limited awareness, lack of transparency, inefficiencies in tax collection, and low public confidence in how taxes are used. The culture of voluntary compliance remains weak, with many citizens perceiving the system as punitive rather than participatory.
The report recommends several key measures:
Launch simplified tax education campaigns that emphasize both rights and responsibilities.
Target outreach in rural and underserved communities where awareness is weakest.
Ensure transparent handling of taxpayer data to restore public trust and safeguard privacy.
Speaking at the event, ICCSL Chairman Shanil Fernando called the findings “a timely wake-up call.” He emphasized that a healthy tax system requires not just enforcement but partnership. “When citizens understand their role and feel respected, compliance follows. That’s the culture we must build.”
The ICCSL plans to collaborate with policymakers, institutions, and civil society to transform these insights into concrete actions. The Chamber is also committed to fostering dialogue around making the tax system more inclusive, transparent, and citizen-friendly—ensuring that every taxpayer is informed, empowered, and engaged.
