Sri Lanka: Proposed amendments to social security contribution levy

Proposed amendments to First Schedule (relating to exemptions) of the Social Security Contribution Levy Act

Proposed amendments to social security contribution levy

Article Posted date 07 July 2023

The government on 4 July 2023 published the Social Security Contribution Levy (Amendment) Bill, which proposes amendments to the First Schedule (relating to exemptions) of the Social Security Contribution Levy Act, No. 25 of 2022.

The bill proposes the following new or revised exemptions:

  • Articles
    • Any importation of motor vehicle identified under HS Codes which are liable to the excise duty (tax) under the Excise (Special Provisions) Act
    • Equipment used by differently abled persons
    • Unprocessed gemstones imported by a licensed holder, for the purpose of re-exporting such gems upon being cut and polished for payment in foreign currency, if such foreign currency is remitted to Sri Lanka through a bank
    • Any article sold at duty-free shops
    • Rice manufactured out of locally produced paddy
  • Services
    • Services provided by any general sales agent who holds an air transport service license issued under the Civil Aviation Act
    • Generation of electricity and supply of electricity other than the supply of electricity by any person who holds a distribution license issued under the Sri Lanka Electricity Act

Read a July 2023 report [PDF 294 KB] prepared by the KPMG member firm in Sri Lanka

 

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