Oct 20, 2019

Tax on credit/debit card foreign transactions Featured

The government has decided to levy a customer tax on credit and debit card usage when buying goods from abroad.

The government has proposed a bill to amend the Finance Act.

This tax is levied on everyone from Sri Lanka who purchases goods and services from overseas with credit and debit card transactions

The bill states that a 3.5% tax will be levied on money sent from Sri Lanka through credit or debit card to purchase goods and services.

The Bill stipulates that at the time of remittance is made from the country to purchase good or services, the relevant tax amount should be collected by the issuing bank or financial institution of the card and transferred to the Income Tax Department.

The bill is due to be presented in Parliament and passed.