Jun 01, Colombo: Sri Lankan government has slashed the taxes on car imports by 50% with effect from midnight yesterday (31st) in response to the request of the importers who lamented that vehicle imports had come down by 90% last year due to high taxes levied.
Cars are subjected to as much as 300% taxes in excise duties, import duties, value added taxes, port and airport development levies and national security levies in addition to the 15% surcharge on all imported items.
The state expects the car imports to pick up and the trend was displayed today in Colombo Bourse where the share prices of companies importing cars rose.
Taxes on electric and electronic items such as watches and cameras too have been brought down to 10% to encourage retail trade especially targeting foreigners. Sri Lanka is anticipating a boom in tourism in post-war context.
Meanwhile, K.M.S. Kandegedara, the new Commissioner General of the Inland Revenue Department who assumed duties yesterday said that the new tax policy of the government is expected to be approved by the Parliament shortly.