The government has taken steps to amend the Social Security Contribution Levy Act.
The Council of Ministers has approved the proposal presented by the President as the Minister of Finance, Economic Stabilization and National Policy to instruct the legislative drafters to prepare a bill for that purpose.
By the budget proposals for the year 2023, motor vehicles and equipment used by persons with special needs, which are subjected to excise duty, have been exempted from social security Levy.
Also, several other amendments to the Act have been identified so far. New amendments are expected to be included for that.
Under the Social Security Contribution Levy Act No. 25 of 2022, a social security Levy of 2.5% has been imposed on taxable persons whose annual taxable turnover exceeds INR 120 million.
