Cabinet has approved the submission to Parliament of orders relating to a temporary 50% surcharge on Customs Import Duty imposed on imported motor vehicles, according to decisions taken at this week’s Cabinet meeting.
The Government said the surcharge was introduced in response to significantly increased import costs resulting from the ongoing armed conflict situation in the Middle East and the potential impact on the national economy.
The surcharge, which came into effect from May 16, will remain valid for a period of three months and applies only to Letters of Credit (LCs) opened for vehicle imports after May 16.
Cabinet papers noted that vehicle imports themselves would not be restricted under the measure. However, amendments made after May 15 to existing LCs — including changes to the number of vehicles, vehicle identification numbers, descriptions or technical specifications — would also bring such imports under the surcharge.
The Government said the move was aimed at regulating vehicle imports during the three-month period while ensuring prices of vehicles already imported into Sri Lanka remain unaffected. (Newswire)
