Electricity to cost 2.5% more due to Social Security Tax

Thursday, 27 October 2022 03:38 - - {{hitsCtrl.values.hits}}

Electricity charges will increase by 2.5%, the Public Utilities Commission (PUCSL) confirmed yesterday.

The hike is following the imposition of 2.5% Social Security Tax effective 1 October 2022.

Issuing a clarification, the PUCSL said 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 1st of October, 2022 on the purchase of electricity by the parties including consumers who receive electricity from the Ceylon Electricity Board.

PUCSL Chairman Janaka Rathnayake said: “Different parties in the electricity industry, including electricity users, have made inquiries about how the social security contribution tax will affect the electricity industry. 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 the purchase of electricity from all parties who purchase electricity from the Ceylon Electricity Board from 1st of October 2022.”

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