Sajith urges Govt. to stop 18% tax on digital entrepreneurs

Wednesday, 9 July 2025 00:08 - - {{hitsCtrl.values.hits}}

Opposition leader

Sajith Premadasa

Opposition leader Sajith Premadasa yesterday urged the Government to stop the 18% tax on digital economy and entrepreneurs.

The Government has proposed the implementation of 18% VAT on digital services from 1 October.

Regardless of how this decision has been presented to the public, Premadasa emphasised that it has already been officially gazetted. As a result, the tax applies across the entire digital sector—including cloud computing services, web-based applications, e-commerce, digital marketing, social media, content creation, and other related areas.

The Opposition leader pointed out that hundreds of thousands of jobs exist within this sector, and many—including a large portion of the younger generation—depend on it for their livelihood. Therefore, he described this move as an attack on the livelihoods of the country’s young, middle-income earners.

The Opposition leader further stated that these VAT increases are being implemented to satisfy IMF conditions, which the Government is attempting to conceal from the public.

He also noted that although the Government previously claimed it would renegotiate the IMF agreement, it has failed to do so and is now enforcing these taxes. He therefore urged the Government to refrain from taxing the middle-class youth and entrepreneurs who rely on the digital sector to earn a living.