Excise duty on vehicles slashed

1 June 2010 08:56 am - 39 - {{hitsCtrl.values.hits}}

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Sri Lanka has slashed an import excise duty on vehicles by 50 percent amid a pick up in economy and demand for vehicles, lifted a general 15 percent surcharge on all imports and slashed duties on electronic items, an official said.

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

But Attygala said with the removal of the 15 percent surcharge there was a reduction even in the 30 percent band as earlier a 33 percent was paid with the surcharge.

Meanwhile taxes on items such as watches and camera's have been brought down to 10 percent to encourage retail trade especially targeting foreigners, he said.

Sri Lanka is expecting a surge in tourist arrivals and in many East Asian nations including Thailand and Singapore attract visitors simply for shopping. (LBO)

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Comments - 39

Tuesday, 01 June 2010 09:59 AM

This is great, but the actual effect on the cars will be a reduction of about 30-35% less. So be watchful when making a new purchase, as the sellers will have a field day.

Tuesday, 01 June 2010 09:42 AM

finally a average Sri Lankan would be able to afford a vehicle and upgrade his living standard(which was considered a crime....and had to pay a ransom(in terms of duties) to the government...)) Bravo authorities ...."better late than never". Hope more things turn to good where all of us sri lankans can lead a good life.....

Tuesday, 01 June 2010 09:43 AM

Taxes in any form are the bane of poor ppl. A reduction is warmly welcome...but a complete removal is much better. The cost of living is too high for many poor people to tolerate at this point in time.

Tuesday, 01 June 2010 09:49 AM

Exactly, common man cannot afford to buy vehicles nor electronic items, these are adhoc methods to bring down the budget deficit in order to show some revenue! We definitely dont have any clear cut policy, every thing seem to be going haywire!

Tuesday, 01 June 2010 09:50 AM

First let them buy cars. Then tax them for using it.

Tuesday, 01 June 2010 09:51 AM

Our voters can have a good ride now.

Tuesday, 01 June 2010 09:54 AM

Wow

What a government..

For those who kept faith ..hats off

Tuesday, 01 June 2010 09:55 AM

50 % from cars 15% from foods? better we eat cars then?

Tuesday, 01 June 2010 09:56 AM

Gaman Saman

I think you are just lost. It shows that the economy is strong and a strong signal to the world that an effective goverment is in power.
UNP will be in the dark for the next decade too..

Tuesday, 01 June 2010 09:59 AM

Slashing imports taxes will have no effect. Importers anyway get their containers out through black channels by paying to influential gov people.

Tuesday, 01 June 2010 09:41 AM

Has anyone been to India and China and seen the chaos on the roads, I have. If we have more vehicles on the road, we have to maintain the roads better, and organize the traffic flow. So lets not put the cart before the horse, they will clog the place up further, we need the horses to pull them out of the ruts.

Tuesday, 01 June 2010 10:00 AM

Desperate revenue move. No matter what public will face with archaic road system. Wactch out Petrol price hike will follow....moore revenue for Gov. Don't jump in to buying cars....we will end up paying for petrol through our noses.

Tuesday, 01 June 2010 10:02 AM

Is this a gimmick for the International Film Festival visitors to do their shopping in Sri Lanka? How about an across the board reduction in prices of all imported goods including essential food for the ordinary citizen? Anyway, you lucky MPs go buy your Fifty Million buck limmos at the reduced price while we Hoi Polloi starve.

Tuesday, 01 June 2010 10:07 AM

Please let me know does this 50% applies to used cars also.Or only on brand new cars.

Tuesday, 01 June 2010 10:10 AM

Does this mean the Rexton will be about 45-50laks??

Tuesday, 01 June 2010 10:10 AM

No comments !

Tuesday, 01 June 2010 10:10 AM

It has nothing to do with a strong economy, it is just that the govt, got no revenue from car duty last year as there were no imports, so to boost imports they reduced the duty so and hope they get the much needed revenue to help finance their over spending. Just chek the facts. It will do more for growth if they slash public spending and reduce on food imports, which is not in todays cuts.

Tuesday, 01 June 2010 10:13 AM

Well in that case maybe if we all stick to not importing vehicles we can bring this tax down even more... Well the common man is not going to be interested in vehicles anyway.. this will help the middle class who work so hard and contribute to the economy who upto this date cant even reward them selves with a brand new vehicle.. hope this make that possible..

Tuesday, 01 June 2010 10:13 AM

Are you blind it is just a desperate move to raise revenue, surely it would not have been implemented otherwise. After all they are just doing what the IMF says. Shameful

Wednesday, 02 June 2010 11:49 PM

Is this another "bread at Rs.3.50"?

Tuesday, 01 June 2010 09:30 AM

"lifted a general 15 percent surcharge on all imports" definitely food prices will come down

Tuesday, 01 June 2010 09:06 AM

I have no bad feeling about making these items more affordable. But this is a policy implemented without proper planning just to increase revenue. For example just imagine if all of us start to drive suddenly without expanding road capacity! you can't expect tourists will arrive here to buy electronics and prices are not competitive to Singapore market. Our duty free prices are more than Singapore retail price!

Tuesday, 01 June 2010 09:08 AM

xxxx

Tuesday, 01 June 2010 09:09 AM

For your information please

Tuesday, 01 June 2010 09:11 AM

THIS WILL CERTAINLY BENEFIT THE FLOOD VICTIMS, PAVEMENT TRADERS, RESIDENTS OF MEWS STREET, IDPS AND ALSO THOSE OF US STRUGGLING TO MAKE ENDS MEET.

Tuesday, 01 June 2010 09:15 AM

Please target Sri Lankan bread winners too and slash the duty on essential items including foods.

Tuesday, 01 June 2010 09:15 AM

Finally prices should come down now.

Tuesday, 01 June 2010 09:20 AM

Excellent sensational fantastic marvellous superb great move!

Tuesday, 01 June 2010 09:22 AM

Good decision considering public who were waiting to buy a vehicle, but not sure whether our roads can tolerate the increasing demand as a result of this move

Tuesday, 01 June 2010 09:28 AM

this is great news, looks like the govt is turning things around.

Tuesday, 01 June 2010 09:05 AM

Lets buy a new family car...

Tuesday, 01 June 2010 09:32 AM

CEPA Reflection....in a long time basis we will suffer...

Tuesday, 01 June 2010 09:32 AM

This has only been implemented to raise government revenue. It is not in the interest of public policy. Today most revenue is from taxes on essential items purchased by the poor. this is allowing those with money to make purchases cheaper. Where is the sense in that?
Typical of a government saying one thing and doing another! People just wake up and reason this out.

Tuesday, 01 June 2010 09:37 AM

How about TV duty? It is too expensive for poor people and shoppers from neighboring countries who come here for shopping. Pls consider

Tuesday, 01 June 2010 09:38 AM

anyone got a clue what will happen to the second hand market???

Tuesday, 01 June 2010 09:38 AM

wow i was waiting for the right time.....now i can buy a car .....

Tuesday, 01 June 2010 09:39 AM

Then what should the government do ??? Increase TAX ??? Don't see a fault in every action taken by the government. Be positive !!!

Tuesday, 01 June 2010 09:39 AM

then how about the people who bought cars yesterday?

Tuesday, 01 June 2010 09:40 AM

This is good move, however all the policy to be adjusted or implemented for long term benefit, not like bread given at Rs 3.50

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Excise duty on vehicles slashed

Comments - 39

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