Bridging the Digital Tax Divide: VAT for Fair Competition in Sri Lanka’s Growing Digital Economy

• Sri Lanka’s digital economy is growing rapidly, valued at approximately USD 3.47 billion in 2021
• Current tax statutes in Sri Lanka do not capture digital transactions effectively, allowing multinational tech companies to avoid paying taxes
• This results in lost revenue opportunities and an uneven playing field between local and foreign digital service providers
• Proposed measures include imposing Value-Added Taxes (VAT) on digital services to generate additional revenue
• Equal treatment for both local and international service providers is essential to avoid creating unfair advantages in the market

Source: dailymirror.lk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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