Social Security Contribution Levy comes into effect today

Social Security Contribution Levy, which was passed in the parliament with amendments in early September, is effective from today (October 01).

In Budget 2022, the Social Security Contribution Levy Bill was introduced as a measure to raise government revenue and rebuild the economy hit by the Covid-19 pandemic.

The tax is imposed upon an annual turnover is Rs. 120 million at the rate of 2.5 percent on taxable turnover of importers, manufacturers, service providers and wholesalers and retailers.

The expected revenue from this tax per year is Rs. 140 billion.

This bill was passed by majority of 81 votes in Parliament on 08th September.

Leader of National People’s Power, MP Anura Dissanayaka had called for a division at the end of the second reading. Following the vote, 91 votes were cast in favour and 10 were cast against the Second Reading. Amendments to the Bill were incorporated at the committee stage, and the third reading was passed without a vote.

The Bill was published in the Gazette on June 21, 2022 and was tabled in Parliament on July 05, 2022 by the Minister of Finance.