Another “Temporary” Tax Becomes Permanent? 50% Vehicle 🚗 Surcharge Extended till Dec. 31

⭕ 🇱🇰 Sri Lanka has extended the temporary 50% surcharge on Customs Import Duty for motor vehicles.

⭕ The 50% surcharge, which was described as a three-month temporary measure to protect foreign reserves, was initially introduced on May 16.

⭕ Deputy Finance Minister Anil Jayantha in May: “Neither a ban nor a permanent restriction” and it would "last only three months". "buyers who could wait three months could avoid the extra cost."

Three months ended; GOV extended surcharge until year-end.

⭕ The taxes currently applied to vehicles, Customs Import Duty (CID) at 30%, the CID surcharge at 50%, VAT at 18%, and SSCL at 2.5%, are new additions. Before 2024, vehicles were exempt from all four of these taxes.

#SriLanka