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Sri Lanka reduces manufacturing tax on vehicle permits

2017-Jun-19 by  News Admin  

The manufacturing tax eligible to be paid based on the price, insurance and vehicle tax during the purchase of an imported or locally assembled vehicle by a state employee, through a permit issued under the Trade and Investments Policy circular No. 01/2016 or according to any amendments to this circular, has been reduced.

Accordingly, under this new tax amendments, if the vehicle purchased under a permit under circular No. 01/2016 does not exceed US dollars 25,000 the manufacturing tax payable would be 35 per cent of the value, and if the price exceeds US dollars 25,000 but is less than US dollars 30,000 the production tax payable would be 40 per cent of the value of the vehicle.

Earlier, the manufacturing tax payable to this category of vehicles was 50 per cent of the value, according to the Gazette Extraordinary No. 1992/29 of 10.11.2016.

The latest Gazette Extraordinary issued under the signature of Finance and Media Minister Mangala Samaraweera come into effect from 10 June 2017.

Sources : Ada Derana

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