Big gaps in understanding taxpayer rights and obligations

Tuesday, 1 July 2025 02:21 - - {{hitsCtrl.values.hits}}

Key revelations in first-ever survey on taxpayer awareness by ICC Sri Lanka
Report urges more inclusive, trust-based approach to tax education

In a landmark move to build a more citizen-focused tax system, the International Chamber of Commerce Sri Lanka (ICCSL) has released the country’s first national survey on public awareness of the Taxpayer Charter, and the findings are eye-opening.

Conducted by the ICCSL Committee on Research, Knowledge Mobilisation and Taxation, the survey set out to understand how well ordinary Sri Lankans know their rights and obligations as taxpayers.

The study was carried out by University of Sri Jayewardenepura Head of ICT Professor B.W.R. Damayanthi and Inland Revenue Department (IRD) Deputy Commissioner General Dr. Nadee Dissanayake, who is also the ICCSL Committee for Research, Knowledge Mobilisation and Taxation Chair.

The final report was handed over to ICCSL Chairman Shanil Fernando recently and presented to ICCSL Board Members and Committee representatives during a special session held at the ICCSL Head Office.

Awareness to action: Bridging the knowledge gap

While the survey found a general awareness of the Taxpayer Charter, many respondents lacked a deeper understanding of how their rights and responsibilities actually apply in real life.

Prof. Damayanthi said: “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.”

Dr. Dissanayake emphasised that while raising awareness is essential, the true challenge lies in enabling people to confidently act on their rights and responsibilities. “Knowing your rights is one thing,” she noted. “But knowing how to exercise them within a fair and respectful system is something else entirely and that’s where significant work remains.”

The report recommends several key actions:

Rethink tax education campaigns to highlight both rights and responsibilities, using clear, practical language.

Target education efforts to groups with low awareness, especially in underserved communities.

Rebuild public trust through more transparent handling of taxpayer data and visible protections for privacy.

Fernando called the survey “a timely wake-up call.” He said: “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.”

Going forward, the ICCSL plans to engage policymakers, institutions, and civil society to take the survey’s findings seriously and turn them into meaningful change. The Chamber also aims to raise public awareness and encourage open dialogue on how to make the tax system more inclusive, transparent, and citizen-friendly.

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