Social Security Tax to replace NBT from October 1

Jayasiri Munasinghe

The Inland Revenue Department stated that those with a turnover of more than Rs.120 million per year should register in their department for the Social Security Tax Act to be implemented from October 1.

Those with a turnover of more than Rs.30 million per quarter must register with the Department.

Presenting the Budget for 2022 to Parliament in 2021, former Finance Minister Basil Rajapaksa removed the Nation Building Tax and introduced the Social Security Tax instead.

But arrangements have been made to implement that tax from October 1. The rate of this tax is 2.5 percent. If the new tax was implemented throughout 2022, the government had expected to generate an income of Rs.140 billion.

But since this tax will be implemented from October 1, only 1/4 of the expected tax revenue can be generated, a senior Income Tax Department official said.

 

 

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