Opposition MP Harsha de Silva has claimed that while the Government maintains VAT is 18%, the actual tax burden borne by consumers is closer to 22% due to the cascading impact of the Social Security Contribution Levy (SSCL).
Speaking on the issue, de Silva said SSCL is applied at multiple stages of the supply chain, including manufacturing, distribution, logistics and retail, resulting in higher costs being passed on to consumers.
He also criticised the Government over what he described as a delay in bringing online casinos and betting applications into the tax net, alleging that such operators continue to generate significant revenue while paying no taxes. De Silva said he would closely monitor the June 30 deadline set for their inclusion under the tax framework.
The MP argued that current tax policies place a disproportionate burden on consumers and small and medium-sized enterprises while allowing certain sectors to remain outside the tax net. (Newswire)