## TIN Now Mandatory for Vehicle Registrations in Sri Lanka 📈

Sri Lanka’s Department of Motor Traffic (DMT) has officially implemented a significant policy shift effective January 5, 2026, making the Taxpayer Identification Number (TIN) compulsory for key vehicular transactions. This move aims to bolster tax compliance and formalize the economy by linking asset ownership directly to the national tax system. • Core Requirement The mandate applies to all new vehicle registrations and ownership transfers. Applicants must provide their TIN alongside their NIC (for individuals) or Business Registration Number (for corporates) to process these transactions. • Target Demographics Under Inland Revenue Department (IRD) guidelines, a TIN is required or highly encouraged for: All individuals aged 18 years and above. All income earners (employment, business, or investment). Professionals (lawyers, doctors, engineers) and self-employed persons. Importers, exporters, and VAT-registered entities. • Exempted Categories To protect low-income groups and the agricultural sector, the following are currently exempt: Motorcycles and Three-wheelers. Tractors, Hand tractors, and Tractor trailers. • Impact on Owners Existing Owners: Those not currently selling or transferring their vehicles are not immediately affected. Future Transactions: Any future transfer of ownership will remain blocked until a valid TIN is provided. Business Sector: Vehicle dealers, leasing companies, and finance firms must now integrate TIN verification into their standard compliance workflows. • Strategic Goals This reform aligns with broader IMF-backed fiscal reforms to broaden the tax base and enhance digital governance. It allows the IRD to identify undisclosed wealth by cross-referencing high-value asset purchases with declared income profiles.