Social Security Contribution Tax from today
The Social Security Contribution Tax will come into force from today on importers, manufacturers, service providers, wholesalers, and retailers whose total turnover exceeds Rs. 120 million per annum.
The expected revenue from this tax per annum is Rs. 140 billion. However, economic experts pointed out that with the imposition of this tax, the prices of goods and services would go up further.They also pointed out that these types of taxes should be introduced on a temporary measure.
The Social Security Contribution Tax was introduced as a measure to raise the government’s revenue and rebuild the economy hit by the COVID-19 pandemic.However, several items, such as medicine, petrol, diesel or kerosene, LP gas, fresh milk procured from local manufacturer or seller, also cinnamon, rubber etc., will be exempt from this tax.
Moreover, electricity generation, medical services, water supply, goods and passenger transport, garment services, tourist services, life insurance companies, cinemas, services obtained from online services, and several more other services will be exempted from this tax.
