Changes in Taxes as per the Finance Act, No. 35 of 2018
Tourism Development Levy (TDL)- w.e.f. 01.01.2019,
Institutions licensed under the Tourist Development Act, No. 14 of 1968 and institutions licensed under the Tourism Act, No. 38 of 2005 are liable to pay Tourism Development Levy (TDL) as follows.
If the annual turnover is less than Rs. 12 Million or a quarterly turnover is less than Rs. 3 Million | 0.5% of turnover |
if the annual turnover exceeds Rs. 12 Million or a quarterly turnover exceeds Rs. 3 Million | 1% of turnover |
However, commission carried on the sale of airline tickets from Travel Agents including licenced General Sales Agents are not liable.
| Upto 31.12.2018, turnover below Rs. 12Mn p.a or Rs. 3 Mn p.q | not liable |
Share Transaction Levy (STL)
STL is payable by every buyer and seller, on the turnover of every share trading transaction, which is conducted through a Stock Exchange at following rates.
Upto 31.12.2015 at the rate of 0.3%.
From 01.04.2016, at the rate of 0.3%.
Accordingly, exemption is available for the period from 01.01.2016 to 31.03.2016.
This gives legal validity for the exemption already claimed.
Construction Industry Guarantee Fund Levy (CIGFL)
CIGFL was charged on Value of Construction Contracts. It has been removed w.e.f.January 1, 2016.
Exemption from Application of Value Added Tax for certain enterprises under Finance Act No. 12 of 2012
Value Added Tax exemption is not applicable to an enterprise which carries out activities which are treated as zero rated and on local purchase of goods or services under Simplified Value Added Tax Scheme.(w.e.f. 01.11.2018)
Luxury Motor Vehicle Levy
If the renewal of revenue licence of any diesel motor vehicle, any luxury motor vehicle, any semi luxury motor vehicle or any semi luxury dual purpose motor vehicle falls due on or after 01.01.2019, Divisional Secretary who renews the annual revenue licence shall collect this levy from the registered owner of such motor vehicle.
Luxury tax on motor vehicles
Imposed on every specified motor vehicle of which the first year of registration falls on or after the date prescriberd.
For vehicles imported on or after the date prescribed, Tax shall be paid to the Director-General of Customs, by the person importing such vehicle, at the time of removing the vehicle from Sri Lanka customs, together with the import duties payable in respect of such vehicle.
For vehicles imported prior to the date prescribed or essembled in Sri Lanka, Tax shall be paid by the registered owner of such vehicle to the Commissioner-General of Motor Traffic at the time of issuing the first Certificate of Registration in respect of such vehicle.
Date and Rates has to be prescribed by regulations.
This tax is not applicable to any specified motor vehicle providing services to a Diplomatic Mission of any State within the meaning of the Diplomatic Privileges Act, No. 9 of 1996 or to an International, Multilateral or Bilateral Organization recognized in term of that Act .
Motor Vehicle Importers Licence fee
Annual fee of Rs. 1,500,000 was imposed by Finance Act No. 10 of 2015 w.e.f 01.01.2016.
This has been repealed(removed) w.e.f. 01.01.2016.
Vehicle entitlement levy
With effect from 01.01.2016, this levy should be paid by every importer of motor vehicles at the following rates.
| Category of vehicles identified under the Rate Harmonized Commodity Description and Coding System Numbers for custom purposes | Rate per vehicle | |
1. | Trishaws, Tractors and Motorcycle | 2,000 | |
2. | a. | Motor cars and other motor vehicles principally designed for the transport of persons other than the vehicles referred to in item 1 |
15,000 |
| b. | Crew cabs, double cabs and cargo vans | |
3. | The following vehicles are not covered by the above items 1 and 2 |
10,000 | |
| a | Special purpose vehicles other than those principally designed for the transport of persons or goods | |
| b | Carriages for disabled persons, whether or not motorized or otherwise mechanically propelled | |
The levy payable for any period commencing from 01.01.2016 but ending prior to 01.01.2019 shall have been collected by the bank at which the letter of credit in respect of the vehicle imported is opened, at the time of opening such letter of credit and shall be remitted to the Commissioner General of Inland Revenue.
The levy payable for any period commencing on or after 01.01.2019, on any vehicle imported into sri lanka, shall be paid by the importer of the vehicle to the Director General of Customs, at the time of removing the vehicle from sri lanka customs together with the import duties.
However, an importer of vehicle who imports such vehicle in unassembled form shall not be liable to pay this levy.
Further, any vehicle imported to Sri Lanka for providing services to a Diplomatic Mission of any State within the meaning of the Diplomatic Privileges Act, No. 9 of 1996 or to an International, Multilateral or Bilateral Organization recognized in term of that Act is not liable to this levy.
Annual company registration levy
The levy shall be paid by every company incorporated / registered under Companies Act No. 07 of 2007 for the year from 01.01.2016 to 31.12.2016.
Category of Company | Rate (Rs. Per Annum) |
Private Company | 30,000 |
Listed Public Company | 1,500,000 |
Any Other Company | 250,000 |
The levy should be collected by the Registrar of Companies on or before 31.12.2019
Following companies are not liable to pay this levy.
- An off shore company
- A company limited by Guarantee
- any company incorporated under the Companies Act, No. 7 of 2007, within the period from 01.01.2016 to 31.12.2016 (for year 2016)
Note:Any comopany incorporated on or after 01.04.2016 will not be liable for this levy.
Debt repayment levy
7% of value addition attributable to the supply of financial services shall be payable by licenced Commenrcial Banks, licenced Specialised banks and finance companies licenced under the Finance Business Act No.42 of 2011, for every month from 01.10.2018 to 31.12.2021.
Value addition shall be the Value addition calculated for the purposes of VAT on Financial services.
The Ministry may, having regard to the economic development of the country by Order published in the Gazette, exempt any transaction of a financial institution specified in such Order, from the payment of the Levy payable, subject to such condition as may be specified in such Order.
Levy should be remitted to the CGIR, on or before the 20th day of the month succeeding the relevant month.
In respect of each financial year, a return in the form specified should be furnished within a period of 6 months from the end of that financial year.
Carbon tax
The registered owner of any specified motor vehicle shall pay the tax for every year commencing from 01.01.2019, other than for the first year of registration of such motor vehicle to the Divisional Secretary, on or before the due date of renewal of annual registration.
Category of the vehicle | Rate (Rs.) | ||
| Less than 05 years | 5 to 10 years | Over 10 years |
Hybrid (Petrol/Diesel) | 0.25 per cm3 | 0.50 per cm3 | 1.00 per cm3 |
Fuel (Petrol/Diesel) | 0.50 per cm3 | 1.00 per cm3 | 1.50 per cm3 |
Passenger bus | Rs. 1,000/- | Rs. 2,000/- | Rs. 3,000/- |
This is not applicable for electric vehicles.
Cellular tower levy
Every mobile telephone operator who owns a cellular tower is liable to pay Rs. 200,000 per annum for each cellular tower for every year commencing from 01.01.2019.
This can be paid in 4 equal instalments as follows.
1st instalment – on or before the 15th April of the relevant year
2nd instalment - on or before the 15th July of the relevant year
3rd instalment - on or before the 15th October of the relevant year
4th instalment - on or before the 15th January of the year succeeding the relevant year.
Levy on mobile short message services
With effect from 01.01.2019, a levy of 25 cents per each mobile short message, on bulk advertisements sent through mobile short message services should be paid.
Mansion Tax
This tax was imposed by Finance Act No. 10 of 2015 and repealed(removed) by Finance Act No. 35 of 2018.
