SDGs Taxation Framework for Sri Lanka

 UNDP Resident Representative in Sri Lanka Azusa Kubota hands over SDGs Taxation Framework (STF) Diagnostic Evaluation Mission Report to State Minister of Finance Shehan Semasinghe

• UNDP provides recommendations to Govt. on realigning and leveraging taxes to achieve the SDGs in the country

The United Nations Development Program (UNDP) yesterday handed over the Taxation Framework for Sustainable Development Goals (SDGs) to the Government.

The SDGs Taxation Framework (STF) provides recommendations to the Government on realigning and leveraging taxes to achieve the SDGs in Sri Lanka.

UNDP said taxation is intricately linked to gender equality and is a fundamental foundation to address intersectional inequality challenges.

The UNDP is supporting governments to establish gender-responsive tax systems, which involves carrying out national level diagnostic assessment on tax and gender; through research and capacity building; adapting the Gender Equality Seal for Tax Administrations; and strengthening gender equality perspectives and analyses in tax policy decision-making at national and international levels. 

In Sri Lanka, the Country Engagement Plan (CEP) agreed by the Government of Sri Lanka (GoSL) and UNDP seeks to bring together the national priorities on financing for development and the Sustainable Development Goals (SDGs) with a specific focus on taxation. Under this, UNDP will also support research and capacity development in the country on the use of tax policies to achieve SDGs on Affordable and Clean Energy (SDG 7) and Gender Equality (SDG 5). CEP is demand-driven and focuses on the Ministry of Finance (MoF) and the revenue authority which are the central points for articulating national requirements vis-à-vis taxation and development.

In this vein, an in-country UNDP SDGs Taxation Framework (STF) Diagnostic Evaluation mission took place from 21 to 25 August, with the mission evaluation report and findings being handed over today. The report was handed over to State Minister of Finance Shehan Semasinghe by UNDP in Sri Lanka Resident Representative Azusa Kubota. Also present was Inland Revenue Department Commissioner General Ranjith Hapuarachchi; Tax Policy, Legislation, International Affairs and Legal Deputy Commissioner General Rukdevi Fernando, and UNDP mission members including SDG Taxation Framework Technical and Outreach Specialist Dr. Amna Khalifa; Taxation and Gender Equality Technical Specialist Caroline Othim; and UNDP Asia Pacific Regional Program Tax Specialist Sudarshan Kasthurirangan.   

The purpose of the mission was to promote a shared understanding of tax and SDGs issues at the national level, while supporting the carrying out a self-evaluation using an SDG taxation framework, to evaluate the coherence of tax systems with respect to specific targets for SDG 17 (related to Domestic Resource Mobilisation) and SDG 5 (related to Gender Equality). This diagnostic framework will help assist Sri Lanka in setting tax reform priorities and sequencing efforts in areas where greater support is needed to realign and leverage taxes to achieve the SDGs.