A 2.5% social security tax will be added to the electricity tariff with effect from 01 October 2022, the Public Utilities Commission of Sri Lanka (PUCSL) said today (26).
PUCSL Chairman Janaka Ratnayake said that the tax will be added as the electricity supply by Ceylon Electricity Board is subject to the Social Security Contribution Levy (SSCL) passed in Parliament recently.
Issuing a clarification regarding how the Social Security Contribution Tax affects electricity bills, Ratnayake said the CEB will charge the said tax on the purchase of electricity by the parties, including consumers, who receive electricity from the CEB.
“Different parties in the electricity industry, including electricity consumers, have made inquiries about how the social security contribution tax will affect the electricity industry. As the electricity tariffs were revised recently, we suggested the Ministry of Finance exempt electricity consumption from this tax. The Ministry of Finance has informed us that according to the relevant Act, the electricity supply of the Ceylon Electricity Board is subject to this tax. Accordingly, the CEB will take steps to tax on the purchase of electricity from all parties who purchase electricity from the Ceylon Electricity Board from 1st of October 2022,” he said, explaining further. (NewsWire)