IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 Dec 2017 | Removal date: open ended
Still in force

Tax-based export incentive

On 19 December 2017, the Sri Lankan Ministry of Finance And Mass Media through Excise Notification 1005 reduced the excise duty on imports of non-potable spirits for export-oriented manufacturing companies from Rs. 15 per kilogram to "10% of the payable duty" i.e Rs. 1.5 per kilogram. The purpose of the duty reduction is to lower production costs for spirit-based export goods.

Participating export companies must enter into an agreement with the Board of Investment of Sri Lanka and must export at least 80% of the products manufactured from the non-potable spirits imported as raw materials.

On 21 February 2018, the excise duty on such imported spirits by exporters has been amended to read "as Rs 1.5 per kilogram" instead of "as 10% of the payable duty of Rs. 15". Therefore with no change to the effective duty.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

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