Taxes on overseas digital payments could be troubling

Online card payment

The Government of Sri Lanka through the budget for 2019 has introduced a charge on all foreign payments.

This includes payments made via digital platforms. So the next time you order something off eBay or make a payment to an overseas university or educational body, the government will ensure that they receive a portion of it.

Sarah Afker, Tax director at BDO partners addressing a post-budget seminar noted that this 3.5% tax, could have an adverse impact on the general population.

She also noted that the proposal to charge VAT on certain goods, which are to be prescribed by the Minister, for the purpose of revenue protection, could give rise to issues. After believes that the business community must be informed well in advance to avoid adverse impacts.

On the other hand, she commended the Government’s decision to make it mandatory for overseas constructions firms to form joint ventures with local companies.

(Source: News 1st)

Share on FB