Effectiveness of tax administration with respect to the construction industry in Sri Lanka

Abstract

The tax system is recognised as a major source of revenue for a country. The money will be utilised to meet the government expenditure as well as to develop the infrastructure of the entire country. Separate government agencies have also been set up for tax administration, and this research is about tax administration related to the construction industry. Given the current economic situation in Sri Lanka, all industries have declined, and tax rates have increased. It has also affected the construction industry. The study is focused on the existing status of tax administration in the construction industry in Sri Lanka. The study has utilised a mixed method of research to explore the subject under review. To gather the study data, an extensive literature review, expert interviews from quantity surveyors, financial managers, accountants, managers, and engineers who are currently engaged in related work in the construction industry, and a questionnaire survey have been used. Information has been included in this research with the responses of thirty (30) industry professionals and the opinions of six (6) industry experts. The information is about Sri Lanka's tax system, tax types, construction industry, concessions due from the government to the construction industry and tax administration related to the construction industry. From that information, it has become clear that there is no efficient tax administration in Sri Lanka regarding the construction industry.