In a landmark initiative to make Sri Lanka’s tax system more citizen-focused, the International Chamber of Commerce Sri Lanka (ICCSL) has released the country’s first national survey on taxpayer awareness, shedding new light on a significant knowledge gap that threatens both public trust and effective revenue collection.
The findings are clear: while many Sri Lankans know about the Taxpayer Charter, far fewer understand what it really means for their rights and obligations in daily life.
ICCSL Survey: A First-of-Its-Kind Effort to Measure Tax Awareness
The survey was commissioned by the ICCSL Committee on Research, Knowledge Mobilisation and Taxation. It was led by Professor B.W.R. Damayanthi, Head of ICT at the University of Sri Jayewardenepura, and Dr. Nadee Dissanayake, Inland Revenue Department (IRD) Deputy Commissioner General and Chair of the ICCSL Taxation Committee.
Their objective was straightforward: understand how well ordinary Sri Lankans actually know their taxpayer rights and duties, and why gaps in knowledge persist.
The final report was formally handed over to ICCSL Chairman Shanil Fernando and presented at a special session with Board Members and Committee representatives at the ICCSL Head Office in Colombo.
The Taxpayer Charter: A Promise Yet to Be Fulfilled
Sri Lanka’s Taxpayer Charter was designed to strengthen the relationship between the public and the tax system by clearly laying out citizens’ rights and responsibilities.
But the new ICCSL survey suggests that while awareness of the Charter exists in principle, practical understanding is weak.
As Prof. Damayanthi explained:(Tax)
“People aren’t just looking for information, they’re trying to make sense of a system that often feels confusing or intimidating. Tax rules don’t exist in a vacuum; how individuals experience them depends greatly on their background, profession, and past interactions with the system.”
This comment points to a deeper issue: the gap between policy and lived experience. Even if the Inland Revenue Department (IRD) publishes the Charter, it doesn’t mean people know how to apply it.
More Than Awareness: Turning Knowledge Into Action(Tax)
One of the survey’s most important findings is that raising awareness isn’t enough on its own.
Dr. Nadee Dissanayake put it bluntly:
“Knowing your rights is one thing. But knowing how to exercise them within a fair and respectful system is something else entirely, and that’s where significant work remains.”
This matters because a tax system can only be effective when citizens understand how to comply—and feel empowered to demand fair treatment.
The survey’s respondents frequently reported confusion about processes such as:
- How to register and file taxes
- What rights they have if audited or challenged
- How their data is used and protected
- Where to turn for clear, honest answers
Recommendations: A New Approach to Tax Education(Tax)
The ICCSL report doesn’t just describe the problem—it also outlines practical solutions to help close the gap.
Here are some of its key recommendations:
Rethink Tax Education Campaigns
Current campaigns often focus on technical or legalistic language that’s hard to follow.
The report urges the Inland Revenue Department and other stakeholders to use clear, accessible language that explains both rights and responsibilities in practical terms.
Example: Instead of simply listing a right to appeal, show people how to file one.
Target Underserved Communities
Awareness isn’t uniform across Sri Lanka.
Certain groups—particularly in rural areas, among informal workers, or those with limited education—have especially low levels of understanding.
The report calls for targeted outreach to these communities to ensure that everyone, not just urban professionals, knows their taxpayer rights and obligations.
Rebuild Public Trust
Another major recommendation is to address public skepticism and fear about the tax system.
The survey found many people don’t trust the IRD to handle their data securely or fairly.
To rebuild confidence, the report suggests:
- More transparent policies on data use
- Visible protections for privacy
- Consistent, respectful treatment of taxpayers
ICCSL’s Response: A Call for Partnership(Tax)
ICCSL Chairman Shanil Fernando described the survey as “a timely wake-up call.”
He emphasised that an effective tax system is built not just on enforcement, but on partnership and trust.
“A tax system that works well isn’t just about collecting revenue—it’s about partnership. When people understand their role and feel respected by the system, compliance follows naturally. That’s the culture we need to build.”
Fernando noted that revenue authorities and policymakers should see taxpayers as partners, not adversaries. Building that partnership requires open communication, education, and respect for citizens’ rights.
Next Steps: Turning Recommendations Into Action
The ICCSL isn’t planning to let the report gather dust.
Going forward, the Chamber has committed to:
- Engaging policymakers and government institutions to act on the survey’s findings
- Collaborating with civil society organisations to ensure inclusivity in tax education
- Promoting open, public dialogue about making Sri Lanka’s tax system more transparent and citizen-friendly
Dr. Dissanayake stressed that these changes are essential if Sri Lanka wants a tax system that is fair, sustainable, and widely accepted by its citizens.
Why It Matters: Taxpayer Rights and Sri Lanka’s Future
Tax is the lifeblood of any country’s development. It funds schools, hospitals, infrastructure, and social services.
But for taxation to work, there must be public buy-in. Citizens need to see the system as fair, transparent, and responsive to their needs.
Sri Lanka’s Taxpayer Charter is an important step in defining this relationship. But as the ICCSL survey shows, simply publishing a Charter isn’t enough.
People must know what it says, understand how to use it, and trust the institutions behind it.
Building a Culture of Tax Citizenship
The ICCSL’s first-ever national survey on taxpayer awareness is more than just an academic exercise. It’s a call to action for everyone involved in shaping Sri Lanka’s tax system.
If Sri Lanka wants better compliance, it needs more than enforcement. It needs education, trust, and respect.
By turning awareness into real understanding, and rights into real protections, Sri Lanka can build a modern, citizen-focused tax system—one where paying taxes is not just a duty but part of shared citizenship.
