🚗 New Vehicle Import Tax Changes in Sri Lanka 🇱🇰

First look at the latest vehicle import gazettes & tax rates:

⭕ Only RMV-registered importers can import. No personal imports.

⭕ No tax concession permit imports.

⭕ Luxury tax threshold increased from Rs. 3.5M ➡️ Rs. 5.5M–6M (Now the Finance Ministry can claim they have adjusted the luxury tax threshold in line with exchange rate change).

⭕ XID tax for EVs & plugin hybrids have massively increased: Rs. 8,500/kW ➡️ Rs. 18,500–144,900/kW depending on kW power. (210% - 1600%+ increase) - Basically they have offset the ignored luxury tax revenue by this.

⭕ Customs duty surcharge: 20% duty now effectively 30% (with 50% surcharge).

⭕ Total tax formula: 20% + 10% (surcharge) + 10% (PAL) + XID, × 18% VAT

⭕ Overall tax increase: 70%+ higher than 2019 (previously only XID applied).

💰 Winners:
✔️ Import & vehicle mafia, leasing companies
✔️ Second-hand market, current vehicle owners

💸 Losers:
❌ EV & plug-in hybrid advocates, Proponents of future-proof, eco-friendly policies
❌ Those expecting affordable vehicle prices

🔴 Biggest Losers:
😞 Govt servants & military personnel who waited 5+ years to use their permits.

🚨 Bottom line? The vehicle tax structure is now extremely revenue-focused, designed to squeeze every last cent, aimed at stopping dollar outflows, and blatantly anti-consumer, anti-EV, and pro-monopoly.

For Sri Lankans, the dream of owning an affordable vehicle is now further than ever.

#SriLanka 🇱🇰 #VehicleTax #EV