Sri Lanka’s TRC Confirms 20% Tax on Data and 38% Tax on Voice Calls

Sri Lanka’s Telecommunications Regulatory Commission (TRC) has clarified that mobile users are currently paying an effective 20.3% tax on internet data and 38.4% on voice calls. The clarification was issued during a Committee on Public Finance (COPF) meeting held on November 17, where Chairman Dr. Harsha de Silva questioned how taxes apply to prepaid mobile services.

TRC officials explained that three levies are added to telecom services: the Social Security Contribution Levy (SSCL), Telecommunication Levy (TL), and Value Added Tax (VAT). Although the TL does not apply to internet services, data users still face a 20.3% effective tax. Voice calls remain significantly more expensive, with a 38.4% tax burden.

The TRC further illustrated the consumer impact:
• A Rs. 100 top-up leaves Rs. 79.30 usable for data.
• For voice calls, only Rs. 61.60 remains due to higher taxation.

Officials noted that the actual value a customer receives depends on how they balance voice and data usage.

The commission also reported earning Rs. 45 billion last year, of which Rs. 18.2 billion was transferred to the Inland Revenue Department. TRC projects Rs. 50 billion in revenue for the coming year.