Professional bodies call for tax reform ahead of Sri Lanka's Budget

Professional bodies across Sri Lanka have intensified calls for a more equitable tax framework as the government prepares to unveil its next Budget. The groups argue that existing tax policies disproportionately burden professionals, including doctors, lawyers, engineers, and accountants, while creating inefficiencies in revenue collection.

The representatives of various professional associations have submitted formal proposals to the Ministry of Finance outlining suggested reforms. Key concerns include progressive taxation structures that better reflect earning capacity, simplified compliance procedures for self-employed professionals, and clarification of tax obligations for those working across multiple income streams.

Professional bodies have emphasized that fairer tax policies would encourage greater formalisation of the economy and improve voluntary compliance rates. They contend that the current system creates disincentives for skilled professionals to remain in Sri Lanka, contributing to ongoing brain drain concerns affecting sectors including healthcare, engineering, and technology.

The advocacy comes amid broader government efforts to expand the tax base and improve fiscal revenues following economic challenges. Officials have indicated that the upcoming Budget will address revenue gaps while maintaining competitiveness for professional services sectors critical to economic development.