Mobile phone users in Sri Lanka are required to pay a 20.3% tax on internet services and a 38% tax on regular voice calls, according to the Telecommunications Regulatory Commission (TRC).
This clarification was made during a meeting of the Committee on Public Finance (COPF).
Committee Chairman Dr. Harsha de Silva raised questions about the effective tax burden on consumers using prepaid mobile services.
In response, TRC Director Indrajith Handapangoda explained the structure of telecommunications levies. He noted that internet usage is not directly subject to the Telecommunication Levy, but consumers pay an effective tax of approximately 20.3% on data services. Voice services, including broadband-related voice facilities, are taxed at an effective rate of 38.4%.
Dr. de Silva asked how much of a Rs. 100 prepaid top-up a user could actually utilize if they used both data and voice services. Handapangoda explained that Rs. 100 would be reduced by about 20.4% for data usage and by 38.4% for voice calls, with the effective amount available to the consumer depending on individual usage patterns.
Despite repeated questions, the TRC representative could not provide a single definitive figure for the usable value of a Rs. 100 prepaid recharge, as it varies according to how consumers use data and voice services.
During the session, Parliamentarian Nimal Palihena also raised concerns about students struggling with poor mobile network coverage in certain areas, urging authorities to address the issue urgently.
