Sri Lanka’s New Tax Comes Into Effect

Sri Lankan importers, manufacturers, service providers, wholesalers and retailers whose total turnover exceeds Rs 120 million per annum will be charged an additional tax of 2.5 per cent effective today. The Social Security Contribution Tax is expected to generate revenue of Rs 140 billion annually. The measure aims at raising the government’s revenue and rebuilding the economy hit by the Covid-19 pandemic. However, several items, such as medicines, petrol, diesel or kerosene, LP gas, fresh milk procured from local manufacturers or sellers, also cinnamon, rubber etc., will be exempt from this tax. Moreover, electricity generation, medical services, water supply, goods and passenger transport, garment services, tourist services, life insurance companies, cinemas, online services and several others have been kept out of the tax’s ambit, reports Daily Mirror.