A wave of opposition has emerged on social media against the government’s decision to impose a 15% tax on foreign income earners, particularly freelancers and those earning dollars online.
Discussions have already begun about bypassing the new tax by using informal remittance systems such as undial and hawala or by keeping earnings in online accounts instead of transferring them to Sri Lanka.
Many online professionals argue that it is unfair for the government to impose such a tax without providing adequate facilities or support for freelancers and digital workers. Social media platforms are flooded with comments from individuals claiming they will now avoid bringing their earnings into the country.
In response to the backlash, Cabinet Spokesperson Minister Nalinda Jayatissa defended the tax, stating that it was necessary due to the significant decline in state tax revenue. He further noted that the initial proposal included a much higher tax rate, but the current government had taken steps to reduce it to 15%.
Despite this explanation, opposition to the tax remains strong, with many earners expressing concerns over how it will affect Sri Lanka’s digital economy and the inflow of foreign currency.
