A heated exchange in Parliament has exposed how little of a mobile user’s reload actually becomes usable credit, revealing staggering tax rates on calls and internet data that many consumers never knew existed.
Sri Lanka’s Telecommunications Regulatory Commission has confirmed that mobile users are being taxed far more than expected, with internet facilities carrying an effective tax rate of 20.3 percent and regular telephone calls taxed at a massive 38 percent. This revelation surfaced during a session of the Committee on Public Finance when its Chairman, Dr Harsha de Silva, pressed officials for clear answers on how much of a customer’s reload is taken away through taxes.
Responding to a direct question, Director of the Telecommunications Regulatory Commission, Indrajith Handapangoda, explained that the Telecommunication Levy does not apply to internet services. He noted that internet usage is subject to a 15 percent effective tax, while voice services fall under a higher 38.4 percent rate. The Chairman then asked for a simplified explanation using a hypothetical scenario.
He questioned whether a young couple communicating through data services could actually use the full value of a Rs. 100 reload. Handapangoda responded that approximately 20.4 percent would immediately be deducted when using data. When asked about traditional voice calls, he confirmed that a user would be charged the full 38.4 percent tax if they relied solely on voice instead of data.
Dr de Silva then raised the real question affecting millions of prepaid mobile users. He asked what would happen if someone deposits Rs. 100 and uses both voice calls and applications such as WhatsApp. Handapangoda replied that it depends entirely on the user’s consumption pattern, reiterating that data carries an effective tax of 20.3 percent while voice remains at 38.4 percent.
During the discussion, MP Nimal Palihena drew attention to a separate but related issue. He pointed out that school children in several rural and underserved areas continue to face learning challenges due to poor telephone coverage and unstable connections. This lack of basic connectivity, he argued, worsens educational inequalities and requires urgent state intervention.
The Committee noted that the public remains largely unaware of how much tax is deducted from every reload and stressed the need for greater transparency in the telecom sector.
