Sri Lanka Imposes 50% Surcharge on Vehicle Import Duty
Sri Lanka has announced a 50% surcharge on the import duty for vehicles, effective from February 1, 2025. The surcharge will be applicable for one year, following the relaxation of personal vehicle imports.
The Minister of Finance, Planning, and Economic Development, Anura Kumara Dissanayake, issued the gazette notice under the powers granted by the Customs Ordinance. The surcharge applies to both general and preferential customs import duties on specified goods.
in addition, separate gazettes have been issued detailing taxes for electric vehicles and a new luxury tax, which ranges up to 6 million rupees per car.
The move follows restrictions placed on imports by Sri Lanka, which had previously banned over 3,000 goods after the central bank’s money-printing policy led to economic challenges, including forex shortages and currency depreciation. These restrictions, which involve taxes and exchange controls, are aimed at stabilizing the country’s economy, but they are also a result of flawed policy frameworks.
For more information, the full gazettes and relevant documents are available for download.
Customs Duty Surcharge Gazette
Electric Vehicle Tax Gazette
Luxury Tax Gazette
