Sri Lanka Vehicle Imports Drop 20% Following New Tax Hike

COLOMBO (News 1st); Vehicle imports into Sri Lanka have declined by approximately 20 per cent compared to the first few months of the year, according to the Sri Lanka Customs.Customs officials said the number of vehicles being processed and cleared on a daily basis has fallen significantly in recent months.During the early part of the year, an average of around 450 vehicles were being recorded and cleared each day. That figure has now dropped to approximately 350 vehicles per day.Sri Lanka Customs attributed the decline to several factors, including the additional surcharge imposed by the government on vehicle imports.The reduction follows a decision by the Ministry of Finance to impose a 50 per cent surcharge on applicable customs import duties for imported vehicles. The measure came into effect on May 16 this year.Authorities said the surcharge was introduced as part of broader efforts to reduce the country's foreign exchange expenditure and manage the outflow of foreign currency associated with vehicle imports.