The Sunday Lankadeepa of 12 August 2007 reports that the government has decided to raise the tax on mobile bills from 2.5% to 7.5% and also institute a LKR 50 monthly tax on all SIMs. These are special taxes that are levied over and above the standard VAT of 15%.
The recommendation was first made by the extremist Jatika Hela Urumaya party that is part of the governing coalition. Another recommendation made by the JHU was that all major infrastructure projects be halted until the end of the war. On one side, no government expenditures on vital infrastructures such as highways; on the other, taxes, that will slow down growth in the dynamic mobile sector that is being driven by private investment.