The Government of Sri Lanka has announced new excise duty rates for vehicle imports, effective immediately, in a special gazette notification issued today (11).
This marks a significant step as the country resumes vehicle imports in February after a five-year suspension.
The gazette notification was signed by the President, in his capacity as the Minister of Finance and Economic Development.
Under the new policy, excise duties range from 200% to 300% for vehicles that are not more than 10 years old from their date of manufacture. The rates are determined based on the engine cylinder capacity and motor power, as detailed in the gazette.
Meanwhile, certain modified vehicles of specific headings and categories are subjected to these steep rates.
The excise duties are categorized based on vehicle age, engine capacity, fuel type, and configuration. Key highlights include:
Passenger Vehicles: Duties range from 200% to 300% for vehicles not exceeding 10 years from their date of manufacture.
Modified Vehicles: Vehicles under specific headings, such as those carrying fewer than 13 passengers, face duties of 300% if modified and less than two years old.
Engine Capacity-Based Rates: Passenger vehicles with engine capacities between 1,000cc and 1,500cc are taxed at Rs. 3,850 to Rs. 4,450 per cubic centimeter (cc), while larger engines exceeding 3,000cc attract duties of up to Rs. 13,300 per cc depending on their age.
Additional rates apply to hybrid and electric vehicles, with duties influenced by motor types and battery capacities.
Vehicles with only electric motors face duties of 200% for those older than 3.5 years and up to 300% for newer units.
(Ada Derana)
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