The Sri Lankan government is facing strong backlash on social media for imposing a 15% tax on individuals earning foreign income online or through other means.
Critics argue that it is unfair to impose such a tax without offering any support or facilities to those who earn money online.
Many social media users have expressed their opposition, with some stating that they will keep their earnings in online accounts rather than bringing them into the country.
Addressing the issue, Cabinet Spokesperson Minister Nalinda Jayatissa explained that the tax was necessary due to a significant decline in state tax revenue.
He further noted that the initial proposal suggested a higher tax rate, but the current government decided to lower it.
As part of the 2025 budget, a service export tax of up to 15% has been introduced for Sri Lankan residents providing services to foreign clients or bringing foreign exchange into the country.
This tax applies to independent professionals and other individuals offering services to international clients.
Starting April 1, 2025, a 15% tax will be imposed on all foreign-source income.
