(LANKAPUVATH | COLOMBO) –The Telecommunication Tax has been increased with effect from midnight yesterday (03).
The National Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has announced that the telecommunication tax will be increased from 11.25 percent to 15 percent from midnight Friday (3).
The TRCSL pointed out that the telephone bills will increase by eight percent due to the increase of VAT from 08 to 12 percent. However, the telecommunications levy does not affect internet charges but the fee will be increased by four percent according to the VAT.
The Telecommunication Levy was reduced from 15% to 11.25% effective from 1 December 2019 when the government of President Gotabaya Rajapaksa came to power.
The reduction in taxes said to have led to the decrease in government revenue from telecommunication taxes by 28% to LKR13.1 billion in 2020 from LKR18.3 billion in 2019 resulting in the current economic crisis.
The government has also decided to increase the value added tax (VAT) from 8% to 12%. The gazette notification has also been issued subject to the Parliamentary approval of the VAT amendment.