Tax of 3.5% when ordering goods from eBay, AliExpress ... here onwards

Tax of 3.5% when ordering goods from eBay, AliExpress ... here onwards

Credit cards and debit cards being utilised for payments across internet for foreign goods and services has been escalating. Wen considering both forms of payments, those involved in transactions have had nothing to pay extra while credit card owners only have had to pay stamp fees in the case of monthly payments. 

However, in future this situation will be changed and thus for every transaction, 3.5 per cent will be
charged as nation building tax, it was proposed at the budget today (5). It was stated in the budget report as: 'A nation building tax of 3.5% will be levied based on payments made to foreign countries in the case of offshore digital services inclusive of purchase of goods and services secured by making use of e-cash transactions cards (credit and debit).  With this introduction, stamp fees charged on cards for foreign purchases will be removed'. 

Accordingly, credit or debit card owners who transact business through internet methods in purchasing popular internet goods across e-Bay, AliExpress in future are expected to pay 3.5 percent on every transaction executed. Not only that, if payments are made through cards in the case of services provided by companies such as Netflix, Amazon, GoDaddy in one instalment, monthly or annually; they too come under this category of tax. Whatever it is, transactions in the case of those ordering goods via internet across Sri Lankan local companies are exempted from the above category.