Opposition Leader MP Sajith Premadasa says a 15% Services Export Tax will cripple Sri Lanka’s digital economy and drive talent away.
In a statement on ‘X’, MP Premadasa said IT freelancers and service exporters bring in much-needed forex and that taxing them discourages growth, investment and innovation.
He pointed out that at a time when Sri Lanka needs to boost exports, this move will push talent overseas, hurting the nation’s economy long-term.
MP Premadasa suggested that instead of taxing dollar earners, the government should incentivize and support them to boost long-term revenue, investments, and talent and industry development.
The Opposition Leader’s remarks come in response to Cabinet Spokesman Minister Nalinda Jayatissa’s statement to the media yesterday that the government has no choice but to implement the Services Export Tax at present.
Addressing the post-Cabinet media briefing yesterday, Minister Jayatissa pointed out that previously a higher tax was proposed in this regard and that if the Services Export Tax is not implemented, then the people will be forced to face an even more serious tax.
The government’s 2025 budget outlines a 15 per cent Services Export Tax to be implemented from 01 April 2025 reportedly for individuals and corporations in Sri Lanka who provide services to external parties and bring back foreign exchange. (Newswire)