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Tue, 28 April 2015 03:34:31
Sri Lanka allows state officials to import cars at reduced duty
14 Dec, 2010 16:35:44
By Riyad Riffai
Dec 14, 2010 (LBO) - Sri Lanka has approved tax cuts up to 50 percent of car import prices to senior state sector workers after nearly halving tariffs on motor vehicles a few months ago, a finance ministry circular showed.
The proposed tax cuts to be effective from December 15, 2010 are for state sector officials who have served in a senior position for over six years.

Military officers above the ranks of lieutenant colonel, commander and wing commander are entitled to the tax concession.

Professionals attached to the armed forces such as engineers, lawyers, doctors and accountants are also eligible, according to the circular obtained by, our sister news website.

Senior university academics with 12 years services are also eligible to the permit.

The tax cut is only valid to import brand new vehicles, but vehicles that have been used for less than one year abroad and locally assembled vehicles using brand new parts are also eligible.

Only vehicle up to a maximum of 25,000 US dollars cost, insurance and freight are allowed to be imported under the scheme.

Under the scheme, vehicles with an engine capacity less than 1,000 cc (cubic centimetres) will get a 50 percent tax cut, while vehicles above 1,000 cc but under 1,600 cc are entitled to a 45 percent reduction.

Vehicles under 2,000 cc but over 1,600 cc will get a 40 percent reduction, while vehicles above 2,000 cc but less than 2,600 cc are entitled to a 30 percent reduction on import taxes.

The tax cuts are the same for both petrol and diesel powered engines.

Until recently ordinary Sri Lankan's were paying vehicles import taxes of over 300 percent, while public servants and representatives were given permits to import vehicles tax free under scheme similar to the one announced by the Treasury.

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6. Jason Dec 25
Sri Lanka's tax system encourages curruption. Why not have a flat rate of 50% on all cars? In Australia we pay 23% Tax on cars. And everyone can afford cars.
5. Herath M S Dec 17
Extension of the treasury circular to open the benefit to Sri Lankan expatriates who work in the middle east countries is observed to be a wise & timely decision because the exchanged funds in the NRFC accounts could be dissolved to earn 50-70% custom duty by the state and to reduce the gas emissions by importing brand new vehicles to the country although the roads are being congested
4. Liyanage Dec 16
My plea is from Middle East who had been sending Foreign Exchange to Mother Land more than 20 years to get a Duty reduction for importing a Family Car to Sri Lanka.
3. B.P.S Thilaka Dec 15
We have been working in middle east for more than 20 years and send tons of dollars to Srlanka. We are just called only Randahadiya. But we Randahadiya are not allowed to import even a small car on this so called tax cut Scheme. Authority PLease see to our request.
2. Metta Widanagamachchi Dec 15
Pl allow court commissioners work as field officers, too the concession for they need field vehicles.
1. lankaputhra Dec 14
Please the relevant authorities take notice to extend the reduced tax facility also to the Sri Lankan Expatriate Community who work in the Middle east and send valuable Foreign Exchange to the country. You may come up with a target group who send USD 50,000 and above in 10-years time in remittance to Sri lanka.