Sajith questions Online Safety Act and 15% IT tax

Wednesday, 5 March 2025 00:02 - - {{hitsCtrl.values.hits}}

The Opposition Leader Sajith Premadasa recently in Parliament questioned the Online Safety Act and the imposition of 15% tax on earnings from export of IT services.

He opined 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 emphasises the adoption of advanced digital technology and innovation, the proposed measures seem unlikely to achieve their fundamental objectives.

Premadasa questioned the Government on when the Online Safety Act would be amended, highlighting that he had opposed it while in Opposition. He asked whether the act would be rendered invalid until it is amended and what steps had been taken in this regard. Additionally, he inquired about the number of suspects arrested and imprisoned under the Act, emphasising that political victimisation had occurred both in the past and continues today under this legislation.

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. He also called for an analysis of the broader impact this tax would have on the digital economy and potential alternative money laundering mechanisms.

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