Vehicle Tax Calculator
New Tax Changes for Vehicle Imports in Sri Lanka
Effective Date: January 31, 2025
The latest tax regulations for vehicle imports in Sri Lanka introduce several key changes:
- Surcharge on Customs Import Duty (CID): An additional surcharge of 50% will be applied.
- Luxury Tax Threshold Adjustment: The luxury tax threshold has been increased from LKR 3.5 million to a range of LKR 5 million – 6 million, depending on the fuel type.
- Excise Duty Calculation: All excise duties will be determined based on the Harmonized System (HS) code.
HS Code Categories for Vehicle Imports:
- Petrol Vehicles:
8703.2x.xx - Diesel Vehicles:
8703.3x.xx - Petrol Hybrid Vehicles:
8703.4x.xx - Diesel Hybrid Vehicles:
8703.5x.xx - Petrol Plug-in Hybrid Vehicles:
8703.6x.xx - Diesel Plug-in Hybrid Vehicles:
8703.7x.xx - Electric Vehicles:
8703.8x.xx
⚠️ Important Note: Our Vehicle tax calculator is designed to calculate duties only for motor cars within the HS codes listed above. It does not support calculations for hearses, ambulances, or other special-purpose vehicles.
CIF (Cost, Insurance, and Freight)
CIF (Cost, Insurance, and Freight) is an international trade term (Incoterm) where the seller is responsible for covering the cost of goods, insurance, and freight to transport them to the buyer’s designated port. However, the risk transfers to the buyer once the goods are loaded onto the shipping vessel.
CID (Custom Import Duty)
CID (Customs Import Duty) is a tax imposed on imported goods, calculated as 20% of the CIF (Cost, Insurance, and Freight) value. It is also referred to as General Duty and is a primary import tariff applied by customs authorities.
Surcharge
The Surcharge is an additional tax of 50% on CID (Customs Import Duty). This increases the total CID to 30% of the CIF value after applying the surcharge. This change will take effect on 31st January 2025.
Download – Gazette Notification No. 2421/43 dated 31.01.2025
PAL- (Port and Airport levy)
PAL (Port and Airport Levy) is a tax imposed on imported goods at a rate of 10% of the CIF (Cost, Insurance, and Freight) value. It applies to imports processed through ports and airports.
Excise Duty
This is bit more complex matter.Excise duty is calculated according to the Gazette Notification 2418/43, dated 10.01.2025 and Gazette Notification 2421/42 dated on 31.01.2025.
Download – Gazette Notification 2418/43, dated 10.01.2025
Download – Gazette Notification 2421/42 dated on 31.01.2025
Luxury Tax
Luxury Tax is applied when the CIF (Cost, Insurance, and Freight) value exceeds a specified threshold:
- Petrol & Diesel: 5 million
- Hybrid & Plug-in Hybrid: 5.5 million
- Electric Vehicles: 6 million
The tax is calculated for exceeding the threshold and rate varies based on the vehicle type:
- Petrol: 100%
- Diesel: 120%
- Petrol Hybrid: 80%
- Diesel Hybrid: 90%
- Plug-in Hybrid (Petrol): 80%
- Plug-in Hybrid (Diesel): 90%
- Electric: 60%
Download- gazette notification for details. [Gazette -2421/41]
VAT- Value Added Tax
VAT (Value Added Tax) is charged at 18% on the total of the following:
CIF + CID + Surcharge + Excise Duty + PAL
This tax is calculated on the final taxable value after applying all other applicable duties and levies.
Total Import cost
Total Import Cost=CIF Value+CID+Surcharge+PAL+Excise Duty+Luxury Tax+VAT
Sri Lanka Customs Official Guidance
Refer to the official Sri Lanka Customs guidance for accurate vehicle tax calculations. Stay updated with the latest tax rates and regulations. Download the guide now
Results:
| Description | Amount in LKR |
|---|---|
| 1. CIF-(Cost, Insurance and Freight) | 0.00 |
| 2. CID-Custom Import Duty (20% of CIF) | 0.00 |
| 3. Surcharge (50% of CID) | 0.00 |
| 4. PAL-Port and Airport Development Levy (10% of CIF) | 0.00 |
| 5.1 Excise Duty RS.0.00 Rate per CC /KW | 0.00 |
| 5.2 Excise Duty -Rs.1,810,900/=Per unit -(Apply only below 1000cc Petrol Hybrid and Petrol Plug in Hybrid) | 0.00 |
| 6. Luxury Tax | 0.00 |
| 7. VAT (18% of Total) | 0.00 |
| Total Price | 0.00 |
Chart for Vehicle Tax
Detailed Analysis of Vehicle Tax
New Tax Changes for Vehicle Imports in Sri Lanka
Effective Date: January 31, 2025
The latest tax regulations for vehicle imports in Sri Lanka introduce several key changes:
- Surcharge on Customs Import Duty (CID): An additional surcharge of 50% will be applied.
- Luxury Tax Threshold Adjustment: The luxury tax threshold has been increased from LKR 3.5 million to a range of LKR 5 million – 6 million, depending on the fuel type.
- Excise Duty Calculation: All excise duties will be determined based on the Harmonized System (HS) code.
HS Code Categories for Vehicle Imports:
- Petrol Vehicles:
8703.2x.xx - Diesel Vehicles:
8703.3x.xx - Petrol Hybrid Vehicles:
8703.4x.xx - Diesel Hybrid Vehicles:
8703.5x.xx - Petrol Plug-in Hybrid Vehicles:
8703.6x.xx - Diesel Plug-in Hybrid Vehicles:
8703.7x.xx - Electric Vehicles:
8703.8x.xx
⚠️ Important Note: Our Vehicle tax calculator is designed to calculate duties only for motor cars within the HS codes listed above. It does not support calculations for hearses, ambulances, or other special-purpose vehicles.
CIF (Cost, Insurance, and Freight)
CIF (Cost, Insurance, and Freight) is an international trade term (Incoterm) where the seller is responsible for covering the cost of goods, insurance, and freight to transport them to the buyer’s designated port. However, the risk transfers to the buyer once the goods are loaded onto the shipping vessel.
CID (Custom Import Duty)
CID (Customs Import Duty) is a tax imposed on imported goods, calculated as 20% of the CIF (Cost, Insurance, and Freight) value. It is also referred to as General Duty and is a primary import tariff applied by customs authorities.
Surcharge
The Surcharge is an additional tax of 50% on CID (Customs Import Duty). This increases the total CID to 30% of the CIF value after applying the surcharge. This change will take effect on 31st January 2025.
Download – Gazette Notification No. 2421/43 dated 31.01.2025
PAL- (Port and Airport levy)
PAL (Port and Airport Levy) is a tax imposed on imported goods at a rate of 10% of the CIF (Cost, Insurance, and Freight) value. It applies to imports processed through ports and airports.
Excise Duty
This is bit more complex matter.Excise duty is calculated according to the Gazette Notification 2418/43, dated 10.01.2025 and Gazette Notification 2421/42 dated on 31.01.2025.
Download – Gazette Notification 2418/43, dated 10.01.2025
Download – Gazette Notification 2421/42 dated on 31.01.2025
Luxury Tax
Luxury Tax is applied when the CIF (Cost, Insurance, and Freight) value exceeds a specified threshold:
- Petrol & Diesel: 5 million
- Hybrid & Plug-in Hybrid: 5.5 million
- Electric Vehicles: 6 million
The tax is calculated for exceeding the threshold and rate varies based on the vehicle type:
- Petrol: 100%
- Diesel: 120%
- Petrol Hybrid: 80%
- Diesel Hybrid: 90%
- Plug-in Hybrid (Petrol): 80%
- Plug-in Hybrid (Diesel): 90%
- Electric: 60%
Download- gazette notification for details. [Gazette -2421/41]
VAT- Value Added Tax
VAT (Value Added Tax) is charged at 18% on the total of the following:
CIF + CID + Surcharge + Excise Duty + PAL
This tax is calculated on the final taxable value after applying all other applicable duties and levies.
Total Import Cost
Total Import Cost=CIF Value+CID+Surcharge+PAL+Excise Duty+Luxury Tax+VAT
Sri Lanka Customs Official Guidance
Refer to the official Sri Lanka Customs guidance for accurate vehicle tax calculations. Stay updated with the latest tax rates and regulations. Download the guide now
Expertise
- Chartered Accountants
- Lawyers
- Tax Consultants
- Business Advisors
Contact Us
- Colombo - No. 333/A, Handala,Wattala
- Galle - No. 39/3, Jail Street, Galle
- 071 2397468
- info@dnsassociate.com