Social Security Contribution Tax Bill heading to Parliament

The Cabinet of Ministers at its meeting on Monday cleared to publish the Social Security Contribution Tax Bill in the Government Gazette and to submit the same to Parliament for approval.

The Budget presented in November 2021 proposed to impose a 2.5% tax on importers, manufacturers, service providers, wholesalers, and retailers whose total turnover exceeds Rs. 120 million per annum. 

The Government aims to rake in Rs. 140 billion from the Social Security Contribution Tax.

The proposal to this effect submitted by Prime Minister Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister was approved by the Cabinet of Ministers on Monday.

It could potentially come into effect from next month onwards following Parliament's approval. 

The Social Security Contribution Tax was set to come into effect on 1 April.