According to the International Monetary Fund (IMF), no plans for a digital services tax have been discussed with Sri Lankan authorities in the current programme.
A spokesperson for the global lender clarified in a statement that it has not made any recommendations on whether Sri Lanka should sign on to the OECD/G20 inclusive framework agreement for international corporate taxation.
The OECD (Organisation for Economic Co-operation and Development)/G20 inclusive framework on BEPS (Base Erosion and Profit Shifting) over 135 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
The IMF statement came in response to some recent media reports and queries regarding its advice to digital service tax in Sri Lanka.
Revenue mobilisation is a key pillar of the IMF’s programme with Sri Lanka, according to the spokesperson, who added that the global lender plans to discuss how best to mobilise additional revenues during the upcoming first review of the Extended Fund Facility (EFF) programme, which is scheduled for September. This could include weighing the benefits and drawbacks of instituting a digital service tax.
The IMF stated that it would work with the authorities to implement reforms that would benefit Sri Lanka and its people.
