HomeNews50% Vehicle Import Duty Surcharge Extended Until End of 2026

50% Vehicle Import Duty Surcharge Extended Until End of 2026

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The government has extended the 50% surcharge on vehicle import duties until 31 December 2026, the Ministry of Finance announced.

The surcharge was initially imposed with effect from 15 May and has now been extended through Gazette Extraordinary No. 2501/88. The extension will take effect on 15 August 2026.

The order was issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, under Section 10A of the Customs Ordinance.

The surcharge applies to Customs Import Duty levied on both general and preferential bases across several vehicle categories.

These include buses and other vehicles designed to carry 10 or more people under HS heading 87.02; motor cars, station wagons, racing cars, ambulances and hearses under HS heading 87.03; and trucks and other vehicles used to transport goods under HS heading 87.04.

The measure covers vehicles powered by diesel and semi-diesel engines, spark-ignition internal combustion engines, electric motors and hybrid systems.

The gazette also sets out conditions relating to vehicles imported under Letters of Credit established on or before 15 May 2026.

The surcharge will apply if the original LC has been amended with regard to the number of vehicles, vehicle descriptions, technical specifications or expiry dates. It will also apply where the “shipped on board” date stated in the Bill of Lading or Airway Bill falls after 15 November 2026.

Director General of Customs Wimal S.K. Liyanagama has issued Departmental Order DOPL 1675 F instructing Customs officers to ensure the immediate and uniform implementation of the measure at all ports of entry.

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