ACT, No. 21 OF 2011

21of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
TELECOMMUNICATION LEVY
ACT, No. 21 OF 2011
[Certified on 31st March, 2011]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 01, 2011
PRINTEDAT THEDEPARTMENT OFGOVERNMENTPRINTING,SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 4.00 Postage : Rs. 5.00

Telecommunication Levy 1
Act, No. 21 of 2011
[Certified on 31st March 2011]
L. D.—O. 8/2011.
AN ACT TO IMPOSE THE TELECOMUNICATION LEVY FROM PERSONS
RECEIVING ANY TELECOMMUNICATION SERVICE COMMENCING FROM
JANUARY 1, 2011 ; TO AMEND PART II OF THE FINANCE ACT, NO. 11
OF 2004 ; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH OR
INCIDENTAL THERETO
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:—
1. This Act may be cited as the Telecommunication Levy Short title and
Act, No. 21 of 2011 and shall be deemed for all purposes to date of
operation.
have come into operation with effect from January 1, 2011.
PART I
TELECOMMUNICATION LEVY
2. There shall be charged and levied from every person Imposition of
receiving any telecommunication service (hereinafter Telecommunica-
tion Levy.
referred to as “the recipient”) for the period commencing on
or after January 1, 2011, a levy called Telecommunication
Levy at the rate of 20 per centum on the value of the supply
of telecommunication services provided by the operator, on
the receipt of such telecommunication service in respect of
each month :
Provided however, that no organization or individual to
whom the provisions of the Diplomatic Privileges Act, No. 9
of 1996 applies, shall be required to pay the levy referred to
above.
3. The levy payable under section 2 shall be collected Mode of
by the operators licensed under section 17 of the Sri Lanka collection of
levy.
Telecommunication Act, No. 25 of 1991 and paid to the
Telecommunications Regulatory Commission of Sri Lanka
(hereinafter referred to as “the Commission”) established
2 Telecommunication Levy
Act, No. 21 of 2011
under the aforesaid Act, within fifteen days from the end of
each month commencing on or after January 1, 2011 along
with such details as may be specified by the Commission.
Commission to 4. The levy, collected by the Commission on behalf of
collect levy on
the Government in respect of each month in terms of section
behalf of the
Government. 3 shall be credited within seven days from the receipt of the
levy to the Consolidated Fund.
Secretary to the 5. The Secretary to the Treasury may, from time to time,
Treasury to issue issue guidelines in relation to the collection and remittance
guidelines.
of the levy on behalf of the Government.
Action in cases 6. (1) Any operator who fails to pay the total amount of
of failure to pay
the levy that is due on the value of supply of services
levy.
provided by such operator, as provided for in section 3, shall
be deemed to be a defaulter and where such defaulter is a
body corporate, the Chairman of the Board of Directors, any
director or principal officer of such body corporate shall be
deemed to be a defaulter for the purposes of this Part of this
Act, and such levy as is not paid on or before the due date
shall be deemed to be a levy in default.
(2) The defaulter shall be liable to pay to the Commission,
in addition to the levy in default, a surcharge calculated,—
(a) at the rate of ten per centum of the amount of such
levy as is in default for the subsequent period of
one month or part thereof, from the due date for the
payment of the levy under section 3 ; and
(b) at the rate of two per centum of the amount of such
levy as is in default for each subsequent period of
one month or part thereof, from the due date for the
payment specified in paragraph (a)
which surcharge shall be collected by the commission.
(3) The Commission shall take action to recover any levy
which is in default for a period of more than three months,
along with amount of the surcharge accrued thereon, in the
manner as is specified hereafter.
Telecommunication Levy 3
Act, No. 21 of 2011
(4) The Commission shall cause to be issued on the
defaulter, three weeks prior to the taking of any steps for the
recovery of the levy in default along with amount of the
surcharge accrued thereon, a Notice, informing the defaulter
of the intention of the Commission to institute proceedings
for the recovery of the amount of the levy in default and the
surcharge accrued thereon in terms of the provisions of this
section.
(5) Where the Commission issues Notice on the defaulter
in terms of subsection (4) but the amount of the levy in
default along with the surcharge thereon remains unpaid
even though the period of three weeks specified in such
Notice has elapsed, the Commission shall under the hand of
the Chairman, issue to the Magistrate having jurisdiction
over the division in which the defaulter resides or is carrying
on business, a Certificate containing the name and address
of the defaulter and the total sum in default along with a
statement to the effect that the person so named has defaulted
in making the payment as required by this section. Where
the defaulter is a body corporate, the Certificate shall contain
the names of the Chairman, the Board of Directors and of
every Director of such body corporate.
(6) The Magistrate shall on receipt of the Certificate issued
under subsection (5), issue summons on the defaulter
requiring him to appear before him on a date to be specified
and show cause as to why proceedings should not be
instituted against him for the recovery of the amount of the
levy in default along with the surcharge accrued thereon.
Where the cause shown appears to the Magistrate to be
insufficient so as to explain the reason for the non-payment,
the Magistrate shall after recording the same, make order for
the recovery of the amount of the levy in default along with
the surcharge accrued thereon, from the defaulter as if it
were a fine imposed by the Magistrate. The money so
recovered shall be remitted to the Commission, which shall
credit the same to the Consolidated Fund.
4 Telecommunication Levy
Act, No. 21 of 2011
PART II
AMENDMENT OF PART II OF THE FINANCE ACT, NO. 11 OF 2004
Amendment of 7. Part II of the Finance Act, No.11 of 2004 is hereby
Part II of the amended as in subsection (2) of section 14 thereof, by the
Finance Act, No.
11 of 2004. substitution for the words “for the period ending on February
29, 2008” of the words “for the period commencing on
February 29, 2008 and ending on December 31, 2010.”.
Part II of the 8. It is hereby declared for the avoidance of doubts that
Finance Act, No.
the provisions of Part II of the Finance Act No.11 of 2004
11 of 2004 not
to apply. shall not apply to any person to whom the provisions of that
Part applied prior to January 1, 2011.
PART III
GENERAL
9. (1) The Minister may make regulations in respect of
Regulations.
all matters in respect of which regulations are required or
authorized to be made or in respect of matters which are
required to be prescribed by this Act.
(2) Every regulation made by the Minister shall be
published in the Gazette and shall come into operation on
the date of such publication or on such later date as may be
specified in the regulation.
(3) Every regulation made by the Minister, shall, as soon
as convenient after its publication in the Gazette, be brought
before Parliament for approval. Any regulation which is not
so approved shall deemed to be rescinded as from the date of
disapproval but without prejudice to anything previously
done there under.
(4) Notification of the date on which any regulation is
deemed under subsection (3) to be rescinded shall be
published in the Gazette.
Telecommunication Levy 5
Act, No. 21 of 2011
10. The amount of the levy charged and collected by Indemnity.
any operator from any recepient, during the period
commencing from January 1, 2011 and ending on the date
of the coming into operation of this Act, shall be deemed to
have been validly charged and levied and such operator is
hereby indemnified from any action civil or criminal, in
respect of the collection of such levy.
11. In the event of any inconsistency between the Sinhala text to
Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case
of inconsistency.
prevail.
12. For the purposes of Part I of this Act- Interpretation.
“value of supply” means the gross value of service after
deducting the levy chargeable under the provisions
of this Act ;
“telecommunication service” means the services provided
to end subscribers by telecommunication and other
operators licensed under section 17 of the Sri Lanka
Telecommunication Act, No. 25 of 1991 but shall not
include interconnection services and access services
provided between local operators, international
settlements between local operators and overseas
telecommunication settlements between local
operators and overseas telecommunication service
providers and international telecommunication
services covered under subsection (1) of section 21 of
Part III of the Finance Act, No.11 of 2004;
“interconnection service” means interconnection services
set out in Interconnection Rules 2003 made under
section 68 of the Sri Lanka Telecommunication
Act, No. 25 of 1991;
“access services” include domestic or international leased
line services, backhaul services and passive
infrastructure services;
“operator” means an operator licensed under section 17
of the Sri Lanka Telecommunication Act, No. 25 of
1991.

6 Telecommunication Levy
Act, No. 21 of 2011
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
December each year in respect of the year following.
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