evidence: Taxation in Sri Lanka mainly includes excise duties, value added tax, income tax and tariffs.[1] Tax revenue is a primary constituent of the government's fiscal policy. The Government of Sri Lanka imposes taxes mainly of two types in the forms of direct taxes and indirect taxes. As of 2018 CBSL report, taxes are the most important revenue source for the government, contributing 89% of the revenue. The tax revenue to GDP ratio is just about 11.6 percent as of 2018, which is one of the lowest rates among the upper-middle income earning countries.[2] At present, the government of Sri Lanka also face major challenges regarding the continuous budget deficits where government expenditures have exceeded the government tax revenue.[3] [...] Complications and issues [edit]Sri Lankan tax system is regarded as one of the most complicated tax structures in the world. Inefficiencies in the administration of taxes, social attitudes among general public about the tax system, lack of knowledge among the public on their obligation are some of the issues which have made severe problems to the government when financing the budgetary expenditures. In addition, the tax system of the country is also treated as inequal.[21]