Sajith questions Govt on Online Safety Act and 15% IT Tax

March 4, 2025 at 11:37 AM

Opposition Leader MP Sajith Premadasa has questioned the government’s actions regarding the Online Safety Act and the proposed tax on dollar earnings in the IT Sector. 

MP Sajith Premadasa raised concerns regarding the Online Safety Act and the 15% IT tax while raising questions under Standing Order 27(2) in Parliament today. 

Online Safety Act

The Opposition Leader stated that amending the Online Safety Act, passed in a manner that restricts freedom of speech and expression guaranteed by Sri Lanka’s Constitution, was a key campaign promise of the current government. 

He further noted that while the country’s economic development program emphasizes the adoption of advanced digital technology and innovation, the proposed measures seem unlikely to achieve their fundamental objectives.

He questioned the government on when the Online Safety Act would be amended, highlighting that he had opposed it while in the opposition. 

MP Premadasa asked whether the act would be rendered invalid until it was amended and what steps had been taken in this regard. 

Additionally, he inquired about the number of suspects arrested and imprisoned under the act, emphasizing that political victimization had occurred both in the past and continues today under this legislation.

Impact of the 15% IT Tax

Addressing the proposed 15% tax on foreign exchange earnings from the IT sector under the Income Tax (Amendment) Act, the Opposition Leader asked how many individuals in the service export sector would be affected.

He also inquired about the annual tax revenue expected from this measure, pointing out that even the Minister of Industries had voiced opposition to the tax.

Furthermore, he urged the government to present its plan for segregating and tracking this tax revenue from foreign remittances. 

MP Premadasa also called for an analysis of the broader impact this tax would have on the digital economy and potential alternative money laundering mechanisms. (Newswire)