Levy of 3.5% on credit, debit card foreign purchases
A 3.5% levy is to be slapped on all foreign purchase transactions with credit or debit cards. The Government has Gazetted an amendment to the Finance Act of 2018 last week to impose the ‘Foreign Commercial Transactions Levy’ on every transaction through a card payment for purchase any goods or services from outside the country.
The rate of the levy will be 3.5 percent on the sum remitted outside Sri Lanka for such transactions.
Previously, a Stamp Duty of 2.5 percent was applied to foreign commercial transactions made by cards, and now it has been increased by 1 percent and converted to a Levy, Finance Ministry’s Tax Policy Advisor Thanuja Perera told the Daily News. Perera also said the previous Stamp Duty had only applied to credit card payments, whereas the new levy applies to both credit and debit cards. The effective date of the new levy will be gazetted by the Finance Minister once the law is approved by Parliament.
(Source: Daily News – By Disna Mudalige)
Latest Headlines
- Sri Lanka to initiate new online passport application system May 30, 2023
- India extends USD 1 Billion Credit Line for Sri Lanka until March 2024 May 30, 2023
- Cabinet approves resume of the Colombo Light Rail Transit project May 30, 2023
- Sri Lanka Government to implement strict law enforcement against religious disharmony May 30, 2023
- Food insecurity improved in Sri Lanka but prevails within specific regions – FAO and WFP May 29, 2023
- ADB approves $350 Million for Sri Lanka economic stabilization programme May 29, 2023
- Ven. Rajangane Saddharathana Thera arrested May 29, 2023