15% tax does not cause injustice to digital service export providers: Minister

26 February 2025 09:34 pm Views - {{hitsCtrl.values.hits}} 24 Bookmark

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Colombo, Feb 26 (Daily Mirror) - Claiming that no injustice has been caused to the service export providers due to the imposition of the 15% tax on service exports, Minister of Labour and Economic Development Anil Jayantha said that under the country's income tax policy, every person is liable to pay income tax.

Issuing a special statement, he said digital service export providers have been granted certain tax reliefs compared to ordinary taxpayers where ordinary people are liable to maximum of 36 percent income tax whereas digital service export providers will be taxed subject to the 15 percent tax threshold.

The Minister said digital service providers will be exempted from income tax for the first Rs. 150,000 and only 6 percent will be charged for the next Rs. 85,000, adding that any other income will be subject to a maximum of 15 percent tax.

He said no tax will be imposed if digital service export providers were taxed 15 percent from the foreign country and that if they have been taxed less than 15 percent, only the balance of the 15 percent will be charged under the double tax relief policy.

He also said as per the tax framework of the Organisation for Economic Co-operation and Development (OECD), the income generating country must impose a minimum global tax.