Sri Lanka slashes vehicles import duty; lifts import surcharge

June 01, 2010 (LBO) – Sri Lanka has slashed an import excise duty on vehicles by 50 percent amid a pick up in the economy and demand for vehicles, lifted a general 15 percent surcharge on all imports and slashed duties on electronic items, an official said. In Sri Lanka prices of wearing apparel are already considered attractive.

Update II With effect from today a car such as an Indian-made Maruti which had attracted excise duties of up to 183 percent of its value will now be charged a duty of 90 percent, Sri Lanka’s director general of fiscal policy S R Attygala said.

Cars attracted over 300 percent in excise duties, import duties, value added taxes, port and airport development levies and national security levies.

The government expects more revenue from car imports which plummeted last year amid high taxes.

Attygala said with a pick up in the economy there was a demand for vehicles including the tourist industry.

The government has also lifted a 15 percent surcharge on all imported items.

Several import duty bands had also been adjusted. Current bands of 0, 6, 16, and 28 percent have been revised to 0, 05, 15 and 30 percent.

But Attygala said with the removal of the 15 percent surcharge there was a reduction ev