State revenue up in first half of 2025 compared to previous year

A significant increase in total government revenue excluding grants has been recorded during the first half of 2025, compared to the same period of 2024, according to a latest report released by the Ministry of Finance.  

The report shows that the total government revenue excluding grants in the first half of 2025 has increased to Rs. 2,321.7 billion, reflecting a growth of 24.8%, compared to Rs. 1,860.6 billion reported in the same period of 2024. 

Tax revenue has made the largest contribution to the increase in state revenue. Accordingly, tax revenue in the first half of 2025 has risen by 25.9% to Rs. 2,151.1 billion, compared to Rs. 1,709.3 billion recorded in the corresponding period of 2024, according to the report.

It further states that several main factors have contributed to this increase in tax revenue, including the increase in excise duty on motor vehicles, as well as Value Added Tax (VAT) revenue, customs import duty, income taxes, merchandise taxes, social security taxes, excise duty on Petroleum, excise duty on liquor, and CESS levy revenue.  

Accordingly, excise duty on motor vehicles has increased by 335.6%, or Rs. 99.5 billion, while VAT revenue has increased by 27.6%, or Rs. 170.4 billion. 

The report issued by the Ministry of Finance also states that the main factors contributing to the increase were an increase in customs import duty by 92.7% or Rs. 45.2 billion, an increase in income taxes by 9.2% or Rs. 41.3 billion, an increase in special commodity taxes by 70.5% or Rs. 32.1 billion, an increase in social security contribution taxes by 17.7% or Rs. 22.3 billion, an increase in revenue from excise duty on Petroleum by 15.5% or Rs. 15.0 billion, an increase in revenue from excise duty on liquor by 9.2% or Rs. 9.1 billion, and an increase in CESS levy revenue by 9.3% or Rs. 3.5 billion.

Fiscal Review Report Jan-September 2025 by Adaderana Online