2.5% Social Security Contribution Tax from today

1 October 2022 08:24 am Views - {{hitsCtrl.values.hits}} 6 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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The Social Security Contribution Tax will come into force from today on importers, manufacturers, service providers, wholesalers, and retailers whose total turnover exceeds Rs. 120 million per annum.

The expected revenue from this tax per annum is Rs. 140 billion. However, economic experts pointed out that with the imposition of this tax, the prices of goods and services would go up further.

They also pointed out that these types of taxes should be introduced on a temporary measure.

The Social Security Contribution Tax was introduced as a measure to raise the government's revenue and rebuild the economy hit by the COVID-19 pandemic.

However, several items, such as medicine, petrol, diesel or kerosene, LP gas, fresh milk procured from local manufacturer or seller, 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, services obtained from online services, and several more other services will be exempted from this tax. (Chaturanga Samarawickrama)

Comments - 6

Gama Rala Saturday, 01 October 2022 10:47 AM

Great, the hard working politicians need a pay rise and new vehicles. Their fleet is nearly a year old and unsafe for precious cargo.

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Nihal S Saturday, 01 October 2022 11:16 AM

The Government strategy is to collect more taxes. While this need to be done, is this the right time? Business and services are already struggling with poor decisions by Gotabaya government. Extra taxes will only shut them. Remember the survival and profits of those businesses are important to charge taxes. The Government should more focus on cutting expenditure. The appointment of 37 State Ministers incurring more burden should not have been done. The Central Bank should have advised against such actions, unfortunately the Bank focus is also more to collect money from the people, but little on political decisions on financial management.

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[email protected] Saturday, 01 October 2022 01:08 PM

While any tax revenue is good to get somewhere towards balance the budget, how this 2.5% Social Security Contribution Tax. Should have been a straight out VAT increase instead. Different tiers only gives more different avenues for avoidance, and unnecessarily complicates. The exemptions also for the 2.5% Social Security Contribution Tax are again stupid.

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Amara Saturday, 01 October 2022 05:35 PM

In other countries it can be contributed as social security and get benefitted from it by claiming. this is just another tax. hilarious.

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Terrence Saturday, 01 October 2022 07:57 PM

Although the govt enforces taxes on manufacturers etc. it is the poor consumers who are paying this indirect tax which will aggravate the inflation path with no cushion for this increase

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dar Sunday, 02 October 2022 03:20 PM

Revenue from social security tax should go into a fund to create national social security system. payments for young, sick, unemployed and elderly citizens so they don't end up in poverty. if this is the case, then every citizen should contribute to it.

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