The Cabinet of Ministers has granted approval for the importing of new rechargeable electric vehicles subject to exemption of Customs tariff to an amount not exceeding the value of US$ 30,000 with the aim of attracting investments to Sri Lanka.
The government states that most Asian countries have followed more convenient access by imposing zero (0%) custom tariffs for assembling and manufacturing electric vehicles and plug- in hybrid vehicles.
It pointed out that through this attractive encouragement, investors and manufacturers can be attracted as well and it can be directed towards future export probabilities which paves the way to act according to the global criteria on environmental security.
Accordingly, the Cabinet approved the proposal presented in this regard by the President in his capacity as the Minister of Finance.
Thereby, Cabinet nod has been received to impose a 0% customs tariff on the CIF value when importing electric vehicles, electric two – wheelers with a power grade up to 500 kW and modern partially assembled Semi – Knocked – Down / SKD sets with an engine capacity up to 3000 CC for assembling plug – in hybrid electric vehicles for investors that engage them for electric vehicles and plug – in hybrid electric vehicles for a minimum investment of United States Dollars 50 million by companies already agreed with the Sri Lanka Board of Investment (BOI) or new companies entering into agreements, aiming to encourage the manufacturing of electric vehicles locally.
Meanwhile, the proposal also includes the exemption of insurance and shipping charges for projects that accomplished the receivable criteria in order to attract investments.
According to the government, these investments are to be attracted under the programmes “Retaining and extending investors for re – investment of existing BOI approved companies” and “The 100 service companies programme that are BOI’s information technology / and companies empowered by information technology”.
1. Criteria for the programme for retaining and extending investors for re – investment of existing BOI approved companies:
- The relevant companies should have been registered under section 17 of Sri Lanka Investment Board Act and have been in operation within a period of less than 5 years
- Proposed minimum investment for the extension of the project to be United States Dollars 3 million
- Creating at least 50 employments to the minimum under the programme of extending the proposed enterprise.
2. Criteria for the 100 service companies programme that are BOI’s information technology / and companies empowered by information technology:
- An enterprise should generate 50 new local employment opportunities and out of which 15 employees should have been technically qualified.
- The minimum investment to be United States Dollars 250,000. (NewsWire)