Social Security Contribution Levy will increase VAT to 20%: AKD | Sri Lanka News


The proposed Social Security Contribution Levy would further burden the people as it would result in further increase of the Value Added Tax (VAT) to 20%, National People's Power (NPP) leader Anura Kumara Dissanayake said today.

He told Parliament that the levy which was proposed in the interim budget was expected to charge a 2.5% tax on turnover in addition to the 15% VAT.

The MP said the new Social Security Contribution Levy would be charged on turnover during import, export, production, distribution and sale resulting in the increase of 20% VAT in total. He said this is a repetitive tax as it would be applied in various stages of the same item.

Mr. Dissanayake said those who are responsible for putting the country into an acute economic crisis are scot free, whereas the common man is further burdened by imposing new taxes.

“No action has been taken against those responsible for putting the agricultural sector into total disarray by prohibiting chemical fertilizer, paying compensation to a Chinese fertilizer shipment and paying huge amount of money as durmurages to fuel shipments. The general public is continuously burdened instead,” he said.

The MP said NPP as s party will object to the proposed levy. (Ajith Siriwardana and Yohan Perera)

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