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Tax

 

As instructed by TRCSL Telecommunication Levy(TL)  is reduced by 25% along with below NBT & VAT revision done by the Department of Inland Revenue. As a result of this revision  effective tax rates will be changed further as specified below.

 

 Service Type

Total Tax Before Revision

Total Tax with effect from 1st Dec 2019

Effective Tax Percentage for Voice services

37.70%

22.60%

Effective Tax Percentage for Data services

19.74%

10.20%


 

How is the tax benefit offered to the customer as a data bonus bundle for the Prepaid Tax inclusive plans ?
 
Example :
 
 
Plan value with TAX (Rs.) Tax % Rs Plan value without TAX (Rs.)
100 Old Value  -    19.74% 16.69 83.51 
100 New Value -    10.20% 9.26 90.74 
 
  • Based on the plan value difference(without TAX), there is an Increase of the plan rental by 8.66%, which will be offered as a data bonus bundle for the TAX inclusive plans only (Prepaid Recharge cards & Reload plans) 
  • Taxes applicable for all other services and plans have been reduced in line with the new Tax Rate.  
 

Change

Revision

Effective Date

1. Removal of the Nation Building Tax (NBT)

From 2.04% to 0%

1st December 2019

2. Reduce Value Added Tax rate (VAT)

From 15% to 8%

1st December 2019

3. Reducing Telco Levy by 25% (TL)

From 15% to 11.25%

1st December 2019