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Tax Charge

Apr 21, 2014 (LBO) - A 10 percent transfer tax will be imposed when a vehicle bought on a duty-slashed permit given to Sri Lanka state workers are transferred to a private citizen, a media report said.
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Sri Lanka The Sunday Times newspaper citing a circular by the Ministry of Finance said a vehicle that is transferred within five years of import will be charged a duty of 10 percent of its CIF (cost insurance freight) value.

Of late large numbers of luxury vehicles have been imported on tax slashed permits.

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The Sri Lankan state charges high taxes on cars imported by ordinary citizens but state workers get cars at tax slashed prices and the elected rulers get tax free cars.

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Earlier tax slashed permits were unofficially sold with no actual transfer taking place, but last year free transfer was allowed.

The sale of tax slashed permit and tax arbitrate became commonplace.

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