Over Estimation of Social Security Contribution

Abstract

Budget 2022 proposed a Social Security Contribution (SSC) tax to rebuild the Sri Lankas Economy from the COVID- 19 pandemic. SSC is charged at 2.5% on an annual turnover exceeding LKR 120 million. This tax is proposed to be in effect from April 2022. The government is expecting to raise LKR 140 billion through this proposal. However, this number is over estimated.