Outstanding tax arrears, including interest, penalties, and late fees, climbed to Rs 94.95 billion by the end of fiscal year 2024/25. This figure does not include an additional Rs 180.1 billion currently under dispute, either at the Inland Revenue Department (IRD) or in the courts. The IRD reported weak recovery performance in the previous fiscal year, collecting only 38.29 percent of its income tax arrears target of Rs 22.76 billion and 63.28 percent of its VAT arrears target of Rs 16.33 billion.
