Govt. earns Rs. 136 b from vehicle imports in 4 months

Thursday, 5 June 2025 04:57 - - {{hitsCtrl.values.hits}}

Customs officials note figure includes collections from VAT, Customs Duty and Luxury Tax
Deputy Treasury Secretary A.K. Seneviratne reveals 596 LCs opened; $ 272 m worth vehicles already cleared
Says for every $ 1 spent on imports, Govt. earns $ 1.7, exceeding $ 1.5 estimate
CoPF Chairman Dr. Harsha de Silva inquires if this surplus could allow lower taxes
Treasury officials clarify it was not feasible due to broader fiscal planning

The Government has generated Rs. 136 billion in revenue from motor vehicle imports between January and April 2025.

This figure includes collections from Value Added Tax (VAT), Customs Duty, and Luxury Tax.

This disclosure was made by Sri Lanka Customs officials on Tuesday (3), during a meeting of the Committee on Public Finance (CoPF) chaired by MP Dr. Harsha de Silva.

It was revealed that the Government has set a target of Rs. 450 billion in total revenue from vehicle imports for the year and, given the current situation, officials expressed confidence in achieving this goal.

Deputy Treasury Secretary A.K. Seneviratne, who was also present at the meeting, disclosed that 596 Letters of Credit (LCs) have been opened so far in 2025 for vehicle imports and $ 272 million worth of vehicles have already been cleared.

He expressed confidence in meeting the revenue target, noting that the Government currently earns $ 1.7 for every Dollar spent on vehicle imports, compared to the expected

$ 1.5 per Dollar.

During a lighthearted exchange at the session, the CoPF Chairman inquired whether the unexpected revenue performance might allow for a reduction in vehicle taxes.

In response, Seneviratne clarified that such decisions are not feasible at this point, as the figures are based on annual estimates and the Government’s broader fiscal framework.

On 14 December 2024, the Government resumed imports of vehicles used for special services, while on 1 February 2025, it lifted its temporary suspension on importation of vehicles used for transportation of goods and private purposes. The Government also introduced strict conditions to prevent excessive imports, control foreign exchange outflows, and boost State revenue.

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