The Government has imposed a 50% surcharge on customs duties applicable to privately imported cars and jeeps, excluding public passenger buses, goods transport lorries, motorcycles, three-wheelers and tractors, Deputy Minister of Finance and Economic Development Nishantha Jayaweera said.
Addressing a media briefing on Tuesday (17), Jayaweera also announced that President Anura Kumara Dissanayake had appointed a special committee to draft a new Customs Act to replace the existing legislation and align customs regulations with modern technological and operational requirements.
Responding to questions from journalists on changes to the customs taxation system and vehicle import duties, the Deputy Minister said the proposed legislation would replace the outdated Customs Ordinance, which has undergone numerous amendments over the years.
He further revealed that Cabinet approval had been granted to procure new scanning equipment to improve customs operations. The new system is expected to facilitate document clearance and payments before cargo arrives in the country, while limiting physical inspections to high-risk consignments in a bid to reduce delays.
Meanwhile, Deputy Minister Anil Jayantha dismissed claims by the Vehicle Importers’ Association that recent customs valuation changes could increase vehicle prices by between Rs. 750,000 and Rs. 2 million.
“If the valuation has been reduced, there is no way taxes can increase. A large number of vehicles had already been imported by May 15. There is no justification for increasing the prices of those vehicles that are already in the country,” he said.
Jayantha stressed that the 50% surcharge was not intended as a revenue-generating measure but as a temporary three-month intervention to manage sudden demand for foreign currency and prevent pressure on the rupee.
He also said the Government had no intention of restricting imports or slowing economic activity, adding that the surcharge would mainly affect those seeking to import vehicles immediately. The Deputy Minister further argued that it was unethical for traders to use the surcharge as a justification to increase the prices of vehicles already imported into the country.
