Mar 05, 2019 (LBO) – Sri Lanka’s Finance Minister Mangala Samaraweera told Parliament Tuesday that a revision of excise duty and implementation of a luxury tax on motor vehicles will be effective from 6th March 2019.
According to the minister, the revision of the excise duty will have a minimal impact on smaller personal vehicles. He added that the 200 percent cash margin requirements on motor vehicle imports will be removed in the near future.
Excise duty on the hybrid and electric vans will be revised to reflect the energy efficiency benefits while the excise duty on buddy trucks with cargo carrying capacity less than 2,000 kg will be reduced.
As per the budget proposals, the excise duty on the single cabs and passenger vehicles will also be revised.
Proposed luxury tax on motor vehicles will be imposed on the CIF value or the manufacturer’s price as the case may be in excess of the luxury tax free threshold, as follows;
Luxury Tax free threshold will be the Cost Insurance Freight (CIF) value in the case of imported vehicles andex-factory cost (Manufacturer’s price), in the case of locally assembled vehicles.
Revision of excise duty on motor vehicles and implementation of luxury tax on luxury motor vehicles is expected to generate a revenue of 48,000 million rupees this year.