SRI tax collection increased in the first half of 2024, why?

by times news cr

SRI Tax Collection Growth in 2024

The⁣ Internal Revenue Service (SRI)​ reported a 7% growth in tax ⁤collection from January to June 2024, reaching $10.281 billion. This impressive ‌performance is attributed to several factors, including temporary contributions, value-added tax (VAT) ​increases, and income tax measures.

Key ‍drivers of growth:

Temporary contributions: The SRI​ implemented two temporary​ measures during the period, contributing $331 ⁣million and‌ $184 million ⁤from ⁣the Temporary Social Security Contribution ‌and ⁢Temporary Bank ​Contribution, respectively.
Increased VAT: The recent​ hike in the VAT rate⁢ from⁢ 12% to 15% ⁤in April contributed an additional $6.8 billion⁤ to the total⁣ collection.
Income tax: The SRI collected $3.776 billion in income tax, representing ⁢a 6.2% growth compared to the previous year. This increase is partly attributed​ to the implementation of self-retentions for rent among large ‌taxpayers.

Other notable figures:

Tax collection for ‌June 2024 reached $1.536 billion, reflecting ⁣a 15.4% growth.
Value-added tax ‍(VAT) ⁣collection for the period was $4.507 billion, with‍ a 6.8% increase from the previous year.
⁤Sales revenue until⁤ May 2024 climbed by 2.1% to ‍reach $89.687 billion, with a 6.1%‌ growth compared to ⁤the previous year.

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