ICT sector welcomes FM’S move to abolish 10% telecom levy

ICT sector welcomes FM’S move to abolish 10 per cent telecommunication levy

ICT sector welcomed the move by the Finance Minister Mangala Samaraweera to remove the 10 per cent telecommunication levy imposed on internet services from September 01.

Minister of Digital Infrastructure Harin Fernando earlier said that he made a representation at the last budget to get this concession but it was not a reality. “Now we welcome this move and it will defiantly hold to increase internet penetration in Sri Lanka and also increase use of android devices.”

“With a phenomenal growth of mobile broadband connections and rapidly increasing fixed internet connections, Sri Lanka is fast establishing itself as a potential regional ICT hub.”

India De Soyza Consultant Information and Communication Technology Agency (ICTA) said that this will be a major boost for the ICE sector in Sri Lanka. “Firstly it would greatly help our efforts to promote the internet penetration in Sri Lanka which is around 30%.”

In addition this will also lead to increase usage of mobile ticketing by the public. We will also see a sharp increase of the additional adaptation of mobile booking in areas of Doctor channeling and other mobile based bookings.”

Further rapid Digitalization development this would be a key benefit to consumers and citizen where they will be enabled to use mobile data willingly to browse internet,” said, Managing Director, cum CEO, eCybersec Pvt Ltd Sanjee Balasuriya

“ During 2016, Sri Lankans went on to subscribe to 1.5 million cellular mobile connections and over 300,000 broadband and dial-up internet connections, increasing Sri Lanka’s internet penetration to a 30% and to our total internet users to a 6.1 million. Therefore this tax imposed was crucial for consumers and citizens of this country. With this change Sri Lanka’s increased internet connectivity also have given a boost to the Sri Lankan’s presence in the social media, especially on the Facebook, the favorite local online hangout. With greater access to information comes the ability to make informed decisions when making purchases.”

According to the latest market trends, more and more Sri Lankan consumers research their products online prior to making purchases while millennial remain the main consumers of online e-commerce sites. Young people of the country will have an enabler to use mobile data once the tax component brings down.”

“Overall this would be a good and positive movement from Sri Lankan government,” he said.