Sri Lanka Car Import Tax Calculator

Five duties stack on top of each other. Start with CIF (Cost, Insurance, Freight): (1) Customs Import Duty (CID) = 20% of CIF. (2) CID Surcharge = 50% of the CID amount, adding a further 10% of CIF. (3) Excise Duty = based on propulsion type and engine displacement (cc) or motor output (kW). (4) VAT at 18% = applied to the fully stacked base: CIF × 1.10 + CID + CID Surcharge + Excise Duty. (5) Luxury Tax = triggered only when CIF exceeds the fuel-type threshold, calculated on the excess amount alone. The calculator resolves all five layers simultaneously from your inputs.

Luxury tax is charged only on the CIF amount that exceeds a fuel-type threshold, not on the full CIF. Thresholds and rates: Petrol / Diesel: LKR 5,000,000 threshold, 100% on excess; Hybrid: LKR 5,500,000 threshold, 80% on excess; Electric: LKR 6,000,000 threshold, 60% on excess. Example: a petrol car with CIF of LKR 6,000,000 triggers luxury tax of 100% × LKR 1,000,000 (the excess above LKR 5,000,000) = LKR 1,000,000. A petrol car at exactly LKR 5,000,000 CIF pays zero luxury tax.

Yes. EVs use a different excise duty structure. Instead of engine displacement (cc), excise duty is calculated on motor power in kilowatts (kW). Age matters: EVs under 3 years old attract lower per-kW rates (e.g. LKR 50,000 per kW for the 50-100 kW band), while EVs aged 3 years or more face higher rates (e.g. LKR 72,400 per kW in that same band). EVs also receive a more generous luxury tax treatment: a higher threshold of LKR 6,000,000 and a lower rate of 60% on excess, versus LKR 5,000,000 at 100% for petrol/diesel. Like all excise-duty passenger cars, EVs are exempt from PAL and SSCL.

The 50% CID Surcharge took effect on 01 February 2025. It is calculated as 50% of the CID amount, not 50% of CIF. Since the standard vehicle CID rate is 20% of CIF, the surcharge adds a further 10% of CIF (i.e. 50% × 20%), bringing the combined CID burden to 30% of CIF. Crucially, the surcharge is included in the tax base before VAT is applied, so it compounds the final bill: higher VAT base → higher VAT charge.

Under Sri Lanka customs law, normal passenger cars and other vehicles that attract Excise Duty are explicitly exempt from both PAL (Ports and Airports Development Levy) and SSCL (Social Security Contribution Levy). This is a category-level exemption for excise-duty vehicles, not a concession granted case by case. The complete duty chain for a vehicle import is therefore: CID + CID Surcharge + Excise Duty + VAT (18%) + Luxury Tax (if CIF exceeds the threshold). The general Import Duty Calculator for non-vehicle goods does include PAL and SSCL, which is why the two calculators differ.

Hybrid excise duty is charged per kilowatt (kW) of motor output, not per cc. The approximate bands are: up to 100 kW: LKR 1,500 per kW; 101-150 kW: LKR 2,500 per kW; above 150 kW: LKR 3,500 per kW. To illustrate: a 90 kW hybrid pays roughly LKR 135,000 in excise duty, whereas a comparable 1,500 cc petrol car can face several million rupees in excise duty. Hybrids also benefit from a higher luxury tax threshold (LKR 5,500,000) and a lower luxury tax rate (80%) compared to petrol and diesel equivalents. Enter your hybrid's kW rating in the calculator to see the full duty breakdown.