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Excise duties, taxes revised: Higher prices for vehicles, cigarettes and sugary drinks
View(s):By Tharushi Weerasinghe
The government yesterday increased the excise duties and taxes on a range of items, including vehicles, electronics, beverages, and cigarettes.
A gazette notification to this effect was issued by President Anura Kumara Dissanayake in his capacity as the Minister of Finance. Accordingly, new import taxes on vehicles will range between 200 and 300 percent, depending on engine cylinder capacity and motor power, when imports are allowed next month.
Also going up are excise duties on beverages, particularly those high in sugar. Mineral and aerated waters with added sugar or flavouring will be taxed at Rs. 15 per litre or 36 cents per gram of sugar, excluding 6 grams per 100 ml, whichever is higher. The rate also applies to energy drinks.
Fruit and vegetable juice-based beverages with more than 6 grams of sugar per 100 ml will be taxed at 36 cents per gram of sugar, excluding 8 grams per 100 ml.
Excise duties on cigarettes have also been increased, with rates now depending on the length of the cigarette. Those up to 60mm will be taxed at Rs. 19.35 each, while those between 60mm and 67mm will cost Rs. 50.15. Cigarettes measuring 67mm to 72mm will incur a duty of Rs. 71.45; those between 72mm and 84mm will be taxed Rs. 81, and those exceeding 84mm will cost Rs. 90.05 each.
Selected electronic items will also face new levies ranging between 20% and 30%, depending on the product category. These changes reflect the government’s effort to restructure the excise duty framework and increase revenue.
According to the gazette, public officers purchasing locally manufactured or imported vehicles under concessionary permits will receive substantial duty reductions. Depending on their category, Rs. 22 million, Rs. 16 million, or Rs. 12 million can be waived off from the payable duty. Additionally, public officers using concessionary permits and Sri Lankan diplomatic officers who have served abroad are eligible for a deduction of Rs. 3.6 million.
However, the Sunday Times learns that the suspension of the facility to make use of the duty-free permits for public sector employees will not be relaxed immediately.
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