Asian Journal of Economics, Business and Accounting

This study aims to analyze the tax burden in developing nations with special reference to Sri Lanka, Taxation is a crucial source of revenue for public services, but there are still obstacles in the way of efficient tax collection, especially in developing countries like Sri Lanka. The present study investigates the tax burden in Sri Lanka and suggests strategies to address obstacles related to tax collection. The report makes three major recommendations based on the body of current literature and research: increasing the tax base, lowering tax rates, and enhancing tax administration. While lowering rates can improve revenue collection without worsening inequality, expanding the tax base is necessary to offset revenue loss from both legal and illicit tax evasion. Increasing efficiency and legitimacy need better tax administration, especially via the use of contemporary technologies. Through the implementation of these measures, policymakers may improve the fiscal sustainability, fairness, and efficacy of taxes, eventually supporting public finances and helping the underprivileged and common people.