The government collected Rs 372.88 billion in Value Added Tax (VAT) during fiscal year 2025/26, marking a 9 percent increase compared to the previous fiscal year, according to the Financial Comptroller General Office (FCGO).
VAT revenue from domestic transactions grew by 4 percent to Rs 152.88 billion, up from Rs 146.87 billion a year earlier. Meanwhile, VAT collected on imported goods rose significantly by 12.78 percent, reaching Rs 220 billion, reflecting increased import activity.
Among domestic revenue sources, the government collected Rs 31.80 billion from the sale and distribution of goods, Rs 27.49 billion from consulting and contracting services, Rs 4.60 billion from tourism services, and Rs 32.35 billion from communication services, insurance and air travel. An additional Rs 9.14 billion was collected through the reverse charge mechanism.
The steady rise in VAT collection indicates improving economic activity and stronger tax administration. However, tax experts emphasize that expanding the tax base, improving compliance and promoting domestic production remain essential for sustaining long-term revenue growth.
