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| Imposition of Celluar Mobile Telephone Subscriber Levy |
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AN ACT TO MAKE PROVISION FOR THE IMPOSITION OF CERTAIN CHARGES AND LEVIES CONSEQUENTIAL TO THE 2004 BUDGET PROPOSALS; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH AND INCIDENTAL THERETO.
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BE it enacted by the Parliament of the Democratic Socialist Republic of Sri Lanka as follows :-
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[28th October
, 2004 ]
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Short title
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1. This Act may be cited as the Finance Act, No. 11 of 2004.
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| IMPOSITION OF CELLULAR MOBILE TELEPHONE SUBSCRIBERS’ LEVY |
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Imposition of Cellular Mobile Telephone Subscriber Levy .
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14. There shall be charged and levied from every person using a cellular mobile telephone, (hereinafter referred to as “the user”) for each year commencing on or after January 1, 2004 a levy called Cellular Mobile Telephone Subscriber Levy (hereinafter referred to as ‘the levy’) at the rate of two and half per centum calculated on the value of supply of services or future services by the mobile telephone operator as referred to in section 15 to the user of such cellular mobile telephone in respect of each month :
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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.
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For the purposes of this section the “value of supply” shall have the same meaning as is assigned to it in the Value Added Tax Act. No. 14 of 2002.
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Mode of collection of Levy.
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15. The levy payable under section 14 shall be collected by the mobile telephone operators licensed under section 17 of the Sri Lanka Telecommunications Act, No. 25 of 1991 and paid to the Telecommunications Regulatory Commission of Sri Lanka (hereinafter referred to as “the Commission”) established under the aforesaid Act. within fifteen days from the end of each month commencing on or after January 1. 2004 along with such details as may be specified by the Commission.
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Commission to collect levy on behalf of the government.
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16. The levy collected by the Commission on behalf of the Government in aspect of each month in terms of section 15 shall be credited within seven days from the receipt of the levy as provided for in section 15 to the Consolidated Fund.
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Secretary Treasury to issue guidelines.
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17, The Secretary to the Treasury may from time to time issue guidelines in relation to the collection and remittance of the levy on behalf of the Government.
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Action in cases of failure to pay levy.
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18.
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(1) Any Licensed Mobile Telephone Operator who fails to pay the total amount of the levy that is due on the value of supply of services provided by such operator, as provided for in section 14. 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 Pan 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.
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(2) The defaulter shall be liable to pay a surcharge in addition to the levy in default, calculated”
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(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 15 ; and
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(b) at the rate of two percentum 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),
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which surcharge shall be collected by the Commission.
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(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.
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(4) The Commission shall cause 10 be issued on the defaulter, three weeks prior to the hiking 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.
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(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 , it 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 name of the Chairman , the Board of Directors and of every Director of such body corporate.
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(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 taken 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 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.
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Operation of the provisions of this Part.
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19. The provisions of this Part of this Act shall be deemed for all purpose to have come into operation with effect from January 1.2004.
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Indemnity .
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20. The amount of the levy charged and collected by any Licensed Mobile Telephone Operator from any user, during the period commencing from January 1, 2004 and ending on the date of commencement of this Act, shall be deemed to have been so validly charged and levied and such operator is hereby indemnified from any action civil or criminal in respect of the collection of such levy.
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Schedules
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