Social Security Tax on electricity bills - PUCSL issues clarification

COLOMBO (News 1st) - The Public Utilities Commission of Sri Lanka issued a clarification regarding the implementation of the Social Security Contribution Tax on electricity bills. 

As per the Social Security Tax Act, electricity supply by Ceylon Electricity Board is subject to Social Security Contribution Tax.

Accordingly, the Ceylon Electricity Board will charge the said tax from the 1st of October, 2022 on the purchase of electricity by the parties including consumers who receive electricity from the Ceylon Electricity Board. 

"As the electricity tariffs were revised recently, we suggested the Ministry of Finance exempt electricity consumption from this tax. The Ministry of Finance has informed us that according to the relevant Act, the electricity supply of the Ceylon Electricity Board is subject to this tax. Accordingly, the CEB will take steps to tax on the purchase of electricity from all parties who purchase electricity from the Ceylon Electricity Board from 1st of October 2022." Janaka Rathnayake, Chairman of Sri Lanka Public Utilities Commission said.