(UTV | COLOMBO) –The All Ceylon Communication Owners’ Association has warned that the implementation of the Social Security Contribution Levy will result in an increase in the price of all types of mobile phones and accessories.
The Association said that the tax will be imposed at the rate of 2.5 per cent on importers, manufacturers, service providers, wholesalers, and retailers with an annual turnover of more than Rs. 120 million.
Even though the government has announced the Social Security Contribution Tax at 2.5% when the product reaches the customer it will be nearly 5%, which will result in an increase in the prices of mobile phones and accessories, it said.
The Social Security Contribution Levy Bill was passed in Parliament with Amendments and a majority, and comes into effect from 01 October, 2022.
The Budget 2022 introduced the Social Security Contribution Levy as a measure to raise government revenue and rebuild the economy which was hit by the Covid-19 pandemic.
The Bill will come into force as the Social Security Contribution Levy Act No. 25 of 2022.
