Tax on digital service exporters not unfair – Deputy Minister

Deputy Minister of Economic Development Prof. Anil Jayantha Fernando states that all citizens of the country, including both individuals and businesses, are required to pay taxes.

Speaking in Parliament today (04), he emphasized that it is unfair to focus on the taxes imposed on individuals within the digital sector only.

He further explained that the 15% tax rate for the digital service exports was introduced after careful consideration of the digital sector and stressed that it has always been applied fairly.

Elaborating on the tax structure, the Deputy Minister said, “Individuals who export digital services receive a special advantage. The first Rs. 150,000 of their Rs. 500,000 income is exempt from tax. The next Rs. 83,000 is taxed at 6%, while the remainder is taxed at 15%.”

“Thus, they receive a special benefit. To avail of this advantage, they must prove that their income was earned through exporting services when submitting their tax returns. This is why they are required to submit them through banks. Whether some individuals are evading taxes under this guise is a separate issue, but otherwise, this is not an unfair tax”, he added.