Department of Provincial Revenue

1. Departmental Background

The 13th Amendment to the Constitution of Sri Lanka, enacted in 1987, and the Provincial Councils Act No. 42 of 1987 established the provincial councils in Sri Lanka. Accordingly, the North Western Provincial Council was established in 1988, and to implement the North Western Provincial Council financial statute No. 8 of 1990 approved by the council, it was launched by the North Western Provincial Department of Revenue with effect from 01.01.1991, from the revenues mentioned in items 36:1 to 36:20 in Schedule 9 of List 1 under Article 157A(1) of the 13th Amendment to the Constitution. The responsibility for collecting taxes, fees, and stamp duties and reporting related revenue was assigned to the Commissioner of Provincial Revenue. Additionally, the North Western Provincial Council is authorized to delegate the powers under the statutes listed below, which had not yet been enacted, to the Provincial Department of Revenue to implement those powers and handle the collection and regulation of related taxes and fees.

• Taxes on mineral rights
• Issuance of licenses for pawnbroking businesses

2. Institutional Role

The Commissioner of Provincial Revenue is responsible for regulating, monitoring, and collecting revenues in accordance with the annual revenue estimates prepared under these revenue heads. Accordingly, the overall institutional responsibilities of the department are as follows:

• Collection, accounting, control, and supervision of provincial revenue.
• Timely collection and crediting to the Provincial Fund of taxes and fees assigned to the Revenue Department as per the Annual Financial Statement passed by the North Western Provincial Council.
• Educating taxpayers through media channels, interviews, and field inspections to encourage voluntary tax compliance based on self-assessments.
• Registering tax evaders into the tax system based on information received from the public and external organizations.
• Prompt recovery of taxes, fees, and outstanding default arrears without delay.

To perform these duties effectively, a dedicated staff including the Commissioner of Provincial Revenue, Deputy Commissioners, and Assessors works towards delivering an efficient service.

3. Growth of Stamp Duty Revenue

From 1991 to 2010, Business turnover tax was the primary revenue source for the department. Following the suspension of turnover tax by the Central Government budget in 2011, the department shifted its primary focus to Part II of the North Western Provincial Finance Statute No. 08 of 1990, making the collection of stamp duty its main function.

4. Organizational Chart

The administrative and operational workflow structure of the department is shown in the organizational chart below:

5. Staff Information