Reports on Digital services tax : IMF issues clarification

The International Monetary Fund (IMF) has clarified that it has not engaged in discussions with Sri Lankan authorities regarding plans for a digital services tax within the current program.

The IMF spokesperson emphasized that no recommendations have been provided regarding Sri Lanka’s participation in the OECD/G20 inclusive framework agreement for international corporate taxation.
 

The OECD/G20 inclusive framework aims to combat tax avoidance, enhance international tax regulations, and establish greater tax transparency. More than 135 countries and jurisdictions are collaborating on the implementation of 15 measures under this framework.

The statement from the IMF was issued in response to media reports and inquiries concerning its advice on digital service taxation in Sri Lanka. The spokesperson highlighted that revenue mobilization is a crucial aspect of the IMF program with Sri Lanka. During the first review of the Extended Fund Facility (EFF) program, scheduled for September, the IMF intends to discuss with the authorities the most effective means of generating additional revenue, which may involve exploring the advantages and challenges of implementing a digital service tax.

The IMF expressed its commitment to working alongside the Sri Lankan authorities to implement reforms that serve the best interests of the country and its people.