Cabinet nod to remove custom tariffs on electric and hybrid vehicle components to encourage vehicle assembling  

In a bid to encourage assembly of electric and hybrid vehicles in the country leading to possible future exports, the Cabinet greenlight has been granted to remove custom tariffs on components of electric and hybrid vehicles for companies committing to a minimum investment of US$ 50 million with the Board of Investment (BOI).

President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies  this week sought the approval of the Cabinet of Ministers to impose a zero percent customs tariff on the CIF value when importing electric vehicles, electric two - wheelers with a power grade up to 500 kW and modern partially assembled Semi – Knocked – Down / SKD sets with an engine capacity up to 3000 CC for assembling plug – in hybrid electric vehicles.

Cabinet Spokesperson Minister Bandula Gunawardana noted that investors are required to commit to a minimum of US$ 50 million investment with the BOI in order to access this concession. 

The government also eyes possible exports in the future through this incentive.
“Through this attractive encouragement, investors and manufacturers can be attracted as well and it can be directed towards future export probabilities which pave the way to act according to the global criteria on environmental security,” the Cabinet office said.