Cabinet approves Social Security Contribution Tax Bill

The Cabinet of Ministers given the nod to publish the Social Security Contribution Tax Bill in the government gazette and to submit it to the parliament for approval.

The parliament had passed a resolution in the 2022 budget proposals to introduce a Social Security Fund.

It was decided to introduce a new tax at the rate of 2.5% for importers, manufacturers, service providers, wholesalers and retailers whose total turnover exceeds Rs. 120 million per annum.

The Attorney General’s clearance has been received for the bill prepared by the draftsman for this purpose has been cleared by the Attorney General.

Accordingly, the proposal presented made by the Prime Minister, in his capacity as the Minister of Finance, Economic Stabilization, and National Policies, to publish the said Bill in the government gazette and submit the same thereafter in parliament for approval, was green-lighted by the Cabinet.