26 October 2022
The Public Utilities Commission of Sri Lanka has issued a clarification regarding how the Social Security Contribution Tax affects electricity bills. As per the Social Security Tax Act, electricity supply by Ceylon Electricity Board is subject to Social Security Contribution Tax. Accordingly, the Ceylon Electricity Board will charge the said tax from 1st of October, 2022 on the purchase of electricity by the parties including consumers who receive electricity from the Ceylon Electricity Board.
Explaining further, Mr. Janaka Rathnayake, Chairman of Sri Lanka Public Utilities Commission said,
“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 to 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.”