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Sri Lanka to tax international credit card transactions 3.5-pct :Budget2019

Mar 05, 2019 16:16 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT - Sri Lanka will charge a 3.5 percent nation building tax tax on international credit card transactions, Finance Minister Mangala Samaraweera said.

"This tax will apply to foreign payments made using Electronic Fund Transfer Cards (both Debit and Credit cards) to purchase goods or services including offshore digital services," Finance Minister Samaraweera said.

An existing stamp duty on all credit card transactions will be removed.

This will also address the issue of not taxing foreign online transactions, he said.

It is not clear how it will affect hotel booking on booking engines by local users.

It is also not clear whether Sri Lankans travellng abroad who use credit cards will also have to pay the tax. If it is so, cash use will increase. (Colombo/Mar05/2019-SB)


 

1 Comments

  1. Chatura March 05, 08:28 AM

    Foreign income earners, like me, will be forced to keep our money in offshore accounts, with linked credit/debit cards, without bringing that money to Sri Lanka. Because foreign banks do not have this charge when doing international transactions. Sri Lanka will lose valuable foreign currency because of this tax. Also, people may start to use cryptocurrency instead.

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