The government revenues and grants for January were Rs.283.19 billion, out of which Rs.257.57 billion was raised via taxes. This was 63.8 percent higher from the same period last year.

The staggering increase in the tax revenues in January compared to the same month in 2023 was predominantly due to the recovering economy which was supported further by the 3 percent increase in the value added tax rate from January 1, 2024 onwards.

Between then and now, there wasn’t a single other tax imposed or raised except for the value added tax, and hence the bulk of the growth in tax income came from the recovering economy due to the normalising foreign currency inflows.