FITIS calls on Govt. to remove 3.5% NBT for foreign payments

Tuesday, 19 March 2019 01:27 - - {{hitsCtrl.values.hits}}

Insists move will affect both ICT industry, economy

The Federation of the Information Technology Industry Sri Lanka (FITIS) yesterday called on the Government to remove the 3.5% NBT proposed in the Budget 2019 completely from foreign payments using credit and debit cards, insisting it will affect the ICT industry as well as the economy.

In a letter addressed to Finance Minister Mangala Samaraweera, the apex body of the ICT industry pointed out that the enactment of the proposed NBT of 3.5% to be charged on all foreign payments made by using credit and debit for overseas digital services, would seriously affect SMEs using digital services, while also deterring Sri Lanka’s transformation towards a digital economy.

“With the enactment of this proposal, both ICT and the country will be affected. Majority of the ICT industry consists of SMEs who uses digital services for their business operation. Therefore, 3.5% NBT would seriously impact their businesses,” the letter said.

As far as the country is concerned, the letter stressed that if this proposal is imposed, users will be encouraged to use online money wallets through which these payments can be made, which will result in a reduction in inflow of foreign currency to the economy.

“Therefore, we shall be most grateful if the above points are taken into consideration, and the 3.5% NBT removed completely from foreign payments using credit/debit cards, which will be an encouragement towards transforming economy towards a digital platform,” FITIS appealed.

FITIS has been actively contributing towards changing the landscape of Sri Lankan ICT industry during the last two decades, covering all major industry segments, including hardware, software, training and education, communication, and professional development.

The letter was also copied to Digital Infrastructure and Information Technology Minister Ajith Perera, Development Strategies and International Trade Minister Malik Samarawickrama, Digital Infrastructure and Information Technology Ministry Secretary D.C. Dissanayake, Treasury Secretary Dr. R.H.S. Samaratunga, ICTA Chairman Prof. Rohan Samarajiva, Export Development Board (EDB) Chairperson Indira Malwatte, Digital Infrastructure and Information Technology Ministry Senior Assistant Secretary Waruna Dhanapala, EDB Director Saman Maldeniya and Finance Ministry Economic Advisor Deshal de Mel.