Page 11 - Jan 2018 PDF

The Blue Moon

Investment regulations in Sri Lanka

Trade taxes and trade regulations

Trade Taxes to the export of agricultural products
What is the import duty structure (such as tea) and minerals/raw
of Sri Lanka? materials (such as granite and natural
operations ? In 2016, import tariffs were simplified rubber).
and reduced to three tariff bands. 54 The export cess rates or any revisions
per cent of tariff lines are duty free. are published in a gazette by the
For some products, the government Government. The rates and any
applies a composite tax, which revisions can be found on the Sri Lanka
combines both trade and domestic C u s t o m s w e b s i t e
taxes into one tax. For example, 40-50 (www.customs.gov.lk).
food items are subject to a composite Has the government given any tax
tax called the “special commodity levy”. exemptions to promote exports?
With effect from the latter part of 2014, The export of goods is exempted from
the Government imposed a combined Value Added Tax (VAT) (Sri Lanka
higher rate of excise tax in lieu of all Inland Revenue, Tax Chart – Year of
other applicable domestic and trade Assessment 2014/2015, accessed at:
specific taxes (Central Bank of Sri http://www.ird.gov.lk/en/publication
Note : the
Lanka, Annual Report 2015, p. s/SitePages/Tax%20Chart.aspx?menu
What other taxes do I have to pay id=1404).
at the border as an importer? In addition, raw materials/machinery
In addition to Import Duty, the imported for export processing are
imports are subject to other taxes only exempt from import duty. If a company
applied on imports, such as the Port is registered under the Board of
and Airport Development Levy (PAL) Investment of Sri Lanka (BOI), there is
and Import Cess. The importer also a special scheme for exporters which is
has to pay domestic taxes at the point implemented by the BOI. For further
of import i.e. Value Added Tax (VAT), i n f o r m a t i o n , v i s i t :
Nation Building Tax (NBT) and Excise http://www.investsrilanka.com/
duty. setting_up_in/duty_free.
How can I find out the taxes that Where can I find out about
have to be paid at the point of imported products
import? subject to mandatory Sri Lanka
Sri Lanka Customs' website provides standards?
updates on any changes made to import The Sri Lanka Standards Institute
taxes. You can find the relevant monitors and checks the mandatory
information by visiting the Sri Lanka import product standards. At present
Customs website at: there are 123 imported products that
www.customs.gov.lk have to comply with Sri Lanka
In addition, Sri Lanka Customs also Standards. Information about the
Moreover, two
aintain a produces a “tariff guide” which products and the import inspection
provides information on all taxes scheme can be found at:
applicable. The tariff guide can be http://www.slsi.lk/web/index.php?op
income tax and debit tax. purchased from Sri Lanka Customs. tion=com_content&view=article&id=
Sri Lanka Customs uses a tariff formula 93&Itemid=143& lang=en.
to calculate the final applicable tax. Are there products that need a
This formula or the “tariff calcu lator” is license to import and export?
given on the Customs website. The The Department of Import and Export
importer can enter the CIF value and Control maintains the list of products
applicable taxes and the formula will that require a license to import or
generate the final applicable tax value. export. The Department issues the
D o e s S r i L a n k a p r o v i d e relevant licenses. Information on the
preferential or duty free access to products subject to import andexport
products from any country under licensing and license fees can be
trade agreements? obtained by visiting the website of the
Sri Lanka is a member of two bilateral
agreements with India and Pakistan.
Sri Lanka is also a member of several All information has been
regional trade agreements including given by Sri Lanka High
the South Asian Free Trade Area Commission, New Delhi,
(SAFTA) and the Asia Pacific Trade India.
Agreement (APTA). Information about
eligible countries and products can be
accessed via the Department of
Commerce website at :
www.doc.gov.lk The Blue Moon
Tariff guide published by the Sri Lanka
Customs provide details of preferential wishes a Happy
tariff concessions applied on imports
by Product and by Agreement.
Does Sri Lanka have export specific Independence
taxes?
Sri Lanka imposes a tax on a few Day to Sri Lanka
selected exports known as the export
cess. This export tax is applied mainly

8 The Blue Moon 16 Jan - 15 Feb 2018