Vehicle importers warn SSCL changes could raise taxes despite Govt. claims

• Association says shift of SSCL collection from the point of sale to the Customs stage effectively amounts to a hidden tax increase  
• Minister says claims of a new tax were “misleading tactics” by sellers to create public fear

By Chaturanga Pradeep Samarawickrama  

The Vehicle Importers Association of Sri Lanka (VIASL) has hit back at recent remarks by Deputy Minister Dr. Anil Jayantha, warning that changes to the Social Security Contribution Levy (SSCL) could dramatically increase taxes on vehicle imports.   

While the government claims no new tax is being introduced, the Association says the shift of SSCL collection from the point of sale to the Customs stage effectively amounts to a hidden tax increase. Currently, the 2.5% levy is halved to 1.25%, as it is calculated on 50% of turnover under Inland Revenue provisions. The proposed change will apply the full 2.5% at import and, critically, this amount will also form the base for calculating 18% VAT.   

“The practical impact of this shift has not been fully understood by the public,” the Association said. It also noted that one of its main budget proposals was to charge SSCL at import to prevent one-time personal importers from avoiding the tax under the current system.  

Dr. Jayantha recently told the media that claims of a new tax were “misleading tactics” by sellers to create public fear, emphasizing that the government is only changing the point of collection.   

However, industry representatives warn that from April 1, 2026, when SSCL will be collected at import on 100% of turnover, the combined effect of SSCL and VAT will substantially increase the overall tax burden on vehicle imports. The net impact on total customs duty, they say, will be far higher than initially anticipated, sparking concerns of a stealthy tax hike that buyers and importers may not fully grasp.