However, tax exemptions totalling Rs. 978 billion and an inability to collect over Rs. 1 trillion have led to a significant Treasury loss of approximately Rs. 2 trillion, according to Patali Champika Ranawaka, Chairman of the Ways and Means Committee.

In response, the Inland Revenue Department issued around 900 notices to freeze the bank accounts of tax defaulters in an effort to recover outstanding taxes.

He emphasised the importance of this measure, noting that while there are about 13 million eligible taxpayers aged over 18, only 5 million have been issued Tax Identification Numbers (TINs).

There is a directive to issue TINs to the remaining eligible individuals by year-end, but a challenge remains in integrating TINs with other government identification systems, such as driving licenses.