ICT Companies are Small and Medium Scale Enterprises and taxes are cutting into their marginsMarch 22, 2019
The Federation of Information Technology Industry is protesting the imposition of taxes on credit and debit card transactions for foreign transactions in the recent budget as it will seriously affect the industry.
In a letter sent by the Chairman of the Federation Dr. Kithsiri Manchanayake to Finance Minister Mangala Samaraweera he points out that the 3.5 percent levy would have a serious impact on the industry as most of the ICT companies are small or medium enterprises.
Manchanayake says that “as far as the country is concerned, if this is imposed users will be encouraged to use online money wallets through which these payments can be made. This will result reduction in inflow of foreign currency to the country.”
Manchanayake ends his letter with the plea that the tax be removed completely from foreign payments using credit/debit cards “which will be an encouragement towards transforming economy towards a digital platform.”