Sri Lanka gives tax breaks for sporting events, racing cars

President Mahinda Rajapaksa who is also finance minister said in a prepared budget speech that the foreign income from sports activities is estimated to be around 50 million US dollars a year and it was expected to be raised to 500 million US dollars by 2016.

"The recent international sports events conducted in our country demonstrated great potentials in developing a sports economy," President Rajapaksa said.

"This requires us to sponsor all season sport activities to attract international sports and stakeholders participating in such events."

Excise duty on imported racing cars and go karts will be axed.

The tax cut for racing cars come shortly after taxes on cars used by ordinary Sri Lankans were jacked up.

A restriction on deducting 25 percent of advertising expenses will not apply to sponsorship of international sports events approved by the minister to sports. The concession will be applicable from August 01, 2012.

The supply of hotel accommodation to any sportsman, organizer of any sports event or sponsor arriving in Sri Lanka for participating in any sport event or activity in connection with sport will be exempt from VAT.

READER COMMENT(S)

9. summa Nov 12

A sports car - racing cars (sportscar or sport car) is a small, usually two seat, two door automobile designed for spirited performance and nimble handling.[2] Sports cars may be spartan or luxurious but high maneuverability and minimum weight are requisite

8. EnEff Nov 11

Apollo,
So which police will catch you if you ride a sports car on the roads?

7. Vinod Nov 10

How does the customs define 'racing car'?

6. Apollo Nov 09

Lol, falks, Racing cars are simply not allowed in the roads! ie: even if you own a racing car with tax exempt, you won't be able to take it for a ride on the road for it's illegal!

5. Mahinda Chinthanaya Nov 09

Increase the prices of grocery (by introducing VAT on super markets) so the poor get poorer by paying more for their groceries, cut taxes on importation of recing cars so the rich can become richer. Well done!! keep this going until one day when SL will become like a Somalia!!

4. Nicole Phillips Nov 09

Somebody gave me a very interesting interpretation of the term racing car...

given that our private buses race down the roads, quite literally like a bat out of hell.. does a leyland bus equate a racing car...?

if so anything from a tuk tuk to a bus could be brought in duty free

3. ABC Nov 09

I am Sri lankan professional finding it difficult to afford a normal family sedan for my family use - well the taxes on this category is pretty much higher than luxury racing cars which i do not even dream acquiring - why the so called peoples' government denying its own middle income owning working proessionals of owning a decent car while they enjoy tax free luxury vehicle at the cost of professionals and general public through taxes. I fail to understand why we are treated like hird class citizens in our own country. policy makers please wake up. long live Chinthanaya!!

2. Adrian Tilak Perera Nov 09

I am a Sri Lankan living in China.
I have already booked a Lamborghini Aventador LP700-4 for night street racing in Sri Lanka.

Is it allowed to bring this car to Sri Lanka on duty free basis as it will be used for sports racing (not taking back but keep in my house in Ragama), does it needs registration plates to run in a road race?

1. Chamz Nov 09

Do anyone have an idea how this categorization of sports car would be? is it based on V's or engine capacity?