ANNOUNCEMENT 09 Nov 2012

In November 2012, the government of Sri Lanka announced its new budget with several implications for international trade.

NUMBER OF INTERVENTIONS

5

  • 3 harmful
  • 0 neutral
  • 2 liberalising
Inception date: 09 Nov 2012 | Removal date: 08 Jan 2014
Still in force

Import tariff

On 9 November 2012, the Sri Lankan Minister of Finance and Planning presented the budget for 2013 in the Parliament. The speech included the followin import tariff rebates:

  • Port and Airport levy:
    • Exemptions for Solar panels, medical equipment and coal falling under HS codes 4610, 850131, 854140, 851310, 940510, 940520, 940540, 940550, 903289, 853931, 270111, 270112, 270119.

    • Reduction to 2.5% for HS codes 844851, 845230, 845290, 845190, 340211, 340212, 340213, 340219.
  • The import cess will be reduced for 932290, 5310, 110313, 0409.

Inception date: 09 Nov 2012 | Removal date: 08 Jan 2014
Still in force

Export tax

Besides import tax changes, the minister also announced an increased export tax for selected products.

Inception date: 09 Nov 2012 | Removal date: 08 Jan 2014
Still in force

Internal taxation of imports

The budget speech also included the announcement of exemptions for certain imports from domestic VAT.

Inception date: 01 Jan 2013 | Removal date: open ended
Still in force

Tax or social insurance relief

The budget announced the following tax concession for Small and Medium Enterprises - 

  • Exemption from Value Added Tax and Nation Building Tax for persons or partnerships whose total annual turnover from all businesses is less than LKR 12 million (appx. USD 91,736)
  • For a person having a turnover of less than LKR 300 million (appx. USD 2.23 million)* per year from all businesses for any period prior to April 2011 and having a case of non-compliance with Income or indirect taxes can get a reflief from these outstanding payments if the past earnings are invested prior to 31 March 2014. Profts and income earned from these reinvestments will be income tax exempt for 5 years.
  • A person returning from employment abroad and using his/her earnings to invest in a business will be exempt from all taxes for a period of 5 years.

Sri Lankan Rupee to USD conversion as on 9 November 2012 - LKR 130.81 / 1 USD

 
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