Mobile users levied 20.3% tax on data, 38% on voice calls, TRC confirms

Mobile phone users are required to pay a 20.3% tax on internet services and a 38% tax on regular voice calls, the Telecommunications Regulatory Commission (TRC) has stated.

This clarification was provided during a meeting of the Committee on Public Finance (COPF).

Committee Chairman Dr. Harsha de Silva raised questions regarding the effective tax on consumers using prepaid mobile services.

Addressing the inquiry, TRC Director Indrajith Handapangoda explained the structure of telecommunications levies.

According to Handapangoda, internet usage is not subjected to the Telecommunication Levy, but consumers pay an effective tax of approximately 20.3% for data services. Meanwhile, voice services, including broadband-related voice facilities, are taxed at an effective rate of 38.4%.

Dr. de Silva questioned how much of a Rs. 100 prepaid top-up a user could actually utilise if they engaged in both data and voice communication.

Handapangoda reiterated that Rs. 100 is reduced by about 20.4% for data usage, while voice calls incur the higher 38.4% tax, and the effective amount available to the consumer ultimately depends on their individual usage pattern.

Despite repeated questioning, a definitive single figure representing the usable value of a Rs. 100 prepaid recharge could not be provided by the TRC representative, as usage combinations vary between consumers.

During the session, Parliamentarian Nimal Palihena also highlighted concerns regarding students facing difficulties due to inadequate mobile network coverage in certain areas, calling for urgent attention to the issue.