The import tax in Sri Lanka is not a single, universal rate but rather a combination of various duties and levies that can differ based on the specific type of imported goods. For instance, as of October 1, 2019, certain imports, such as apples and oranges, became subject to a specific set of taxes.
Key Components of Import Tax in Sri Lanka
Import taxes in Sri Lanka typically comprise several distinct charges, each applied at a specific percentage. These rates contribute to the total cost of bringing goods into the country.
Here is a breakdown of the import tax components and their rates, as applied to specific agricultural imports from October 1, 2019:
| Component | Rate | Description |
|---|---|---|
| General Customs Duty | 30% | A primary tax on imported goods. |
| Value Added Tax (VAT) | 15% | A consumption tax levied on the value added to goods and services at each stage of production or distribution. |
| Ports and Airports Development Levy (PAL) | 7.5% | A charge aimed at funding the development and maintenance of port and airport infrastructure. |
| Nation Building Tax (NBT) | 2% | A tax imposed for general nation-building activities and development projects. |
Breakdown of Import Tax Components (Example)
Understanding each component provides clarity on how import costs are calculated.
General Customs Duty (30%)
This is a fundamental tax imposed on goods crossing national borders. The 30% rate applies as a general duty on the specified imports, contributing significantly to the overall tax burden.
Value Added Tax (VAT) (15%)
VAT is a broad-based consumption tax. In the context of imports, it is applied at a rate of 15% on the value of the goods, often including the customs duty and other levies, reflecting its nature as a tax on consumption.
Ports and Airports Development Levy (PAL) (7.5%)
The Ports and Airports Development Levy is a specific charge designed to generate revenue for the improvement and maintenance of the country's port and airport facilities. This 7.5% levy helps fund critical infrastructure.
Nation Building Tax (NBT) (2%)
The Nation Building Tax is a smaller, yet significant, component of the import tax structure. Applied at a 2% rate, it is a tax collected to support various national development and infrastructure projects.
These specific tax rates became applicable from October 1, 2019, impacting certain imported products by adjusting the total import duty structure.
