Sri Lanka slaps tax on wireless fixed phones

Nov 07, 2007 (LBO) – The Sri Lankan government Wednesday said it would extend a 10 percent tax on mobile phones to wireless CDMA phones in an effort to raise revenue. . The move was announced by President Mahinda Rajapakse, who is also finance minister, when he presented the government’s budget for 2008 in parliament.

The imposition of the levy on wireless phones is expected to raise 2,200 million rupees.

It was among a host of proposals to raise revenue for the cash-strapped government.

The island’s telcos have been introducing wireless CDMA phones to provide quick connections and meet pent up demand.

Telcos adopted CDMA technology to provide fixed phones because of the delays and difficulties involved in laying wires.

Earlier in the year the government slapped a 10 percent charge on mobile phones when a fixed per-subscriber charge drew fire as it would hurt poorer users most.