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No tax increase on online transactions says Namal

21 Aug 2021

Minister Namal Rajapaksa today (21) dismissed rumours which suggest that the Government has  increased taxes for e-commerce platforms by taxing online transactions. “This is false. In fact, the government is reiterating its position that it will make way for e-commerce platforms and digitalization to make their mark in Sri Lanka and will offer all assistance and facilities possible,” he stated. In response to a move made by several private banks which resulted in the increase of the previous 2% surcharge levied on foreign online transactions to a rate of  6.5% to 7%, Rajapaksa iterated that this is not a Government policy. “This is not a government policy and is in fact being charged by the private banks. The government has nothing to do with it,” he explained. The Minister also noted that he has received a rising number of complaints over this increase especially at a time when people’s incomes have been affected. Accordingly, Rajapaksa has raised these concerns with Minister Basil Rajapaksa who then instructed State Minister Ajith Nivard Cabraal to see how this matter can be solved for the benefit of the consumer.  “Minister Cabraal is in discussions with the private banks who have explained that this is due to the fluctuating dollar rate since these transactions are with platforms overseas. However Minister Cabraal is trying to reach a settlement on the matter soon,” he reassured. He also noted that more discussions are underway with Basil Rajapaksa to further relax taxes for e-businesses with a foreign currency inflow into the country, especially in terms of e-gaming. “E-gaming attracts massive remittances and has become a global market attracting the young and old alike. Many have established livelihoods out of this and my aim is to expand e-gaming in Sri Lanka which will attract valuable foreign exchange. Presently for inward remittances from e-gaming, the Central Bank has imposed taxation on it but I am in discussions to see how this can be solved where we can promote the industry further,” he stated. In terms of crypto currency promotion, the Minister says that he is discussing how the government can promote BlockChain technology which enables the existence of cryptocurrency and a larger digital economy. “I am on the verge of drafting a cabinet paper with the Finance Minister’s advice to get the approval of the government to pave the way for digital banking. Through this approval, I am also looking to appoint a committee that can create policies for blockchain and crypto and train the youth to support industries related to blockchain,” he said,


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