Revenue Proposals - Budget 2022

1. Surcharge Tax levied on income on one-off basis

Imposition of a Surcharge Tax at the rate of 25 percent on individuals or companies who have earned a taxable income over Rs. 2,000 million for the year of assessment 2020/2021.

2. Social Security Contribution

Charging “Social Security Contribution” on the liable turnover over Rs. 120 million per annum at the rate of 2.5 percent. This contribution is charged with effect from April 1, 2022.

3. Value Added Tax charged on supply of financial services

Increase of Value Added Tax charged on supply of financial services by financial institutions from 15 percent to 18 percent. The levy is to be paid every month from January 1, 2022 to December 31, 2022.

4. Excise Duty (Special Provisions) of Cigarettes

Revision of Excise Duty on Cigarettes

5. Excise Duty on Liquor under Excise Ordinance

Revision of Excise Duty on Liquor

6. Proposals in relation to non-tax income
     (i) Levying a fee in respect of vehicles which undergo motor traffic accidents and allowing the insurer to reimburse the fee from the insurance.
     (ii) Levying a fee for modernization, modification or upgrading of vehicles.
     (iii) Legalizing all unauthorized roadworthy motor vehicles and motor cycles by paying a penalty during a period of amnesty.
     (iv) Release all vehicles stationed at Sri Lanka Customs because of non-payment of tax or other reasons for release after charging relevant taxes and a fine.
     (v) Issuing a licence for conducting leisure related activities for special premises which are developed as special zones.
     (vi) Issue licences issued by Telecommunication Regulatory Commission of Sri Lanka through an auction. These licences are issued in relation to telecommunication including for fixed telephone operators, mobile operators, internet service providers and satellite broadcasting operators.