Sri Lanka overhauls telecom taxes
Sri Lanka has changed the taxes for telecommunications services and also imposed regulatory licence fee of 2 percent of revenues. While high tech telecommunications equipment imports will not be charged VAT, the government has imposed a LKR 2 per minute tax on outgoing calls. The 20 percent tax replaces the VAT, a mobile subscriber levy, and an economic service charge, The Lanka Business Online reports. Furthermore, from July 2011, the minimum call rate of LKR 2 per minute will be reduced to LKR 1.50 per minute, president Mahinda Rajapaksa said in the budget speech.
