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Sri Lanka’s Finance Ministry says tax revenues increased in the first four months of 2005 but did not say whether it was below or higher than the original target. "In the period January – April 2005 tax revenue amounted Rs.
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98 billion indicating an increase of 18 percent over the corresponding period of 2004," the Finance Ministry said in a mid-year fiscal position report released Monday.
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The government attributes its tax income growth to tax reforms implemented through last year’s budget.
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However, the government’s Mid Year Fiscal Report 2005 did not say whether revenues were in line with budgeted targets for the year or not.
VAT revenue from January to April came to Rs 44 billion - an increase of 24 percent compared to the same time period in 2004.
"This increase was achieved despite a reduced rate of 5 percent applicable to essential commodities as announced in the Budget 2005 and large amount of duty free imports reaching the country under tsunami relief during this period," said