News Today: Digital service exporters will not face inconvenience under the new tax system, says Deputy Minister Dr. Anil Jayantha Fernando.

Colombo – Economic Development Deputy Minister Dr. Anil Jayantha Fernando has reassured that digital service exporters will not face undue burdens with the newly implemented tax structure, effective from April 1st.

Speaking at a press briefing, the Deputy Minister clarified that individuals and businesses engaged in exporting digital services will only be taxed if their income exceeds Rs. 150,000 per month. Those earning below this threshold will be exempt from taxation.

Tax Breakdown for Digital Service Providers

For those earning above Rs. 150,000, the new tax structure is as follows:

• A 6% tax on the first Rs. 85,000 beyond the Rs. 150,000 threshold.
• Any amount exceeding this will be taxed at a maximum of 15%.

Dr. Fernando highlighted that while average citizens face an income tax rate of up to 36%, digital service exporters are being offered significant relief with a capped tax rate of 15%.

Addressing Misinformation

The Deputy Minister also warned against misinterpretations being circulated regarding the tax policy. He claimed that certain groups are deliberately misleading the public for ulterior motives, emphasizing that the tax system is structured to support the growth of the digital economy.

“This tax policy applies to both individuals and companies in the digital service sector. We are committed to ensuring that Sri Lanka’s digital exporters remain competitive while contributing fairly to the economy,” he concluded.