The government has announced the import tax percentages applicable to vehicles imported from February onwards through a special gazette notification.
Accordingly, excise duties ranging from 200% to 300% have been imposed on vehicles. The gazette, issued by the Minister of Finance, who is also the President, outlines that certain categories of vehicles will be taxed based on their engine cylinder capacities and motor power measured in kilowatts.
“Vehicle prices are expected to increase by around 20% due to these taxes. If other taxes, including VAT, are also applied, the increase could be even higher,” said Indika Sampath Merenchige, President of the Vehicle Importers Association of Lanka.
Full Gazette: G.N 2418-43 dated 10.01.2025 EX.SPL.PRO (1)