Govt. clarifies no new tax on e-commerce

TREASURY Secretary Dr. Harshana Suriyapperuma yesterday clarified that the Government has not imposed any new tax on e-commerce transactions, whilst expressing willingness to explore a 'de minimus' system, similar to that used in many countries.

- BY CHARUMINI DE SILVA

TREASURY Secretary Dr. Harshana Suriyapperuma yesterday clarified that the Government has not imposed any new tax on e-commerce transactions, whilst expressing willingness to explore a 'de minimus' system, similar to that used in many countries.

Responding to questions from journalists at a media briefing, he addressed public concerns stemming from confusion over recent Customs procedures for importing small parcels through e-commerce platforms and clarified that these measures were introduced to protect Government revenue.

He said the Treasury is currently focused on identifying and plugging revenue leakages across State institutions to protect the country's fragile economy as it recovers from a severe downturn. "As part of that process, we have instructed State agencies to report to us on any revenue leakages and to take corrective measures," he said.

Dr. Suriyapperuma revealed that it was through this reporting mechanism that Sri Lanka Customs flagged the misuse of concessions previously granted to certain e-commerce operators. He explained that some platforms have claimed to operate under business-to-business (B2B) models, while in reality handling business-to-consumer (B2C) transactions, thereby avoiding proper taxes and benefitting from loopholes.