A 2.5% social security tax will be added to the electricity tariff with effect from October 01, 2022, the Public Utilities Commission (PUCSL) says.

PUCSL chairman Janaka Ratnayake mentioned this in a clarification issued to explain how the Social Security Contribution Tax affects electricity bills.

As per the Social Security Contribution Levy Act, electricity supply by the Ceylon Electricity Board (CEB) is subject to Social Security Contribution Tax.

Thereby, this tax will be charged with effect from October 01, 2022, on the purchase of electricity by the parties including consumers who receive electricity from the CEB.

Explaining further, the PUCSL chairman said, ““Different parties in the electricity industry, including electricity consumers, have made inquiries about how the social security contribution tax will affect the electricity industry. As the electricity tariffs were revised recently, we suggested the Ministry of Finance to exempt electricity consumption from this tax. The Ministry of Finance has informed us that according to the relevant Act, the electricity supply of the Ceylon Electricity Board is subject to this tax. Accordingly, the CEB will take steps to tax on the purchase of electricity from all parties who purchase electricity from the Ceylon Electricity Board from 1st of October 2022.”