Annual Report 2008 - Ministry of Finance and Planning
Annual Report 2008 - Ministry of Finance and Planning
Annual Report 2008 - Ministry of Finance and Planning
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2. Fiscal Developments - <strong>2008</strong><br />
56<br />
Box 2.1<br />
Concessions on Motor Vehicle Imports<br />
The importation <strong>of</strong> motor vehicles under concessionary<br />
duty structure was implemented under different circulars in<br />
<strong>2008</strong>. In most <strong>of</strong> these schemes, the excise duty which is<br />
the largest revenue source was either exempted or placed<br />
under a concessionary rate. The schemes implemented<br />
under section 19(A) <strong>of</strong> the Customs Ordinance were; Public<br />
Administration Circular No.22/99 for retired public servants,<br />
Foreign <strong>Ministry</strong> Circular No. 165 for public servants in<br />
Foreign Service <strong>and</strong> Trade, Tariff <strong>and</strong> Investment Policy<br />
Circular No. 01 & 02 for public servants. In addition, duty<br />
waivers have also been granted under compliant Tax Payers<br />
Scheme, Sri Lanka Nation Building Bond Scheme <strong>and</strong><br />
for the eligible members <strong>of</strong> the Parliament <strong>and</strong> Provincial<br />
Councils.<br />
Out <strong>of</strong> the 16,758 concessionary permits issued to public<br />
servants under Trade, Tariff <strong>and</strong> Investment Policy Circular<br />
during 2007-<strong>2008</strong>, 11,684 permits have been made use <strong>of</strong><br />
during the same period. The foregone excise duty under<br />
these concessionary permits in <strong>2008</strong> alone was Rs. 10,062<br />
million which was around 0.3 percent <strong>of</strong> the GDP. The total<br />
revenue foregone from all these schemes amounted to Rs.<br />
11,094 million in <strong>2008</strong>. However, the implementation <strong>of</strong> this<br />
scheme for public servants was terminated in March <strong>2008</strong>.<br />
Number <strong>of</strong> Concessionary Permits Issued<br />
Category 2007 <strong>2008</strong><br />
Public Administration Circular<br />
42 42<br />
No.22/99 (Retired Public Services)<br />
Foreign <strong>Ministry</strong> Circular No. 165 147 139<br />
(Public servants in Foreign Service)<br />
Trade, Tariff <strong>and</strong> Investment Policy 14,345 2,413<br />
Circular No. 01 & 02 (Public Servants)<br />
Total 14,534 2,594<br />
Source: Department <strong>of</strong> Trade, Tariff <strong>and</strong> Investment Policy<br />
Excise Duty Waivers on Motor Vehicle Imports under Concessionary Schemes<br />
Category<br />
No. <strong>of</strong> Vehicles<br />
Imported<br />
Excise Duty Waiver<br />
(Rs. mn)<br />
2007 <strong>2008</strong> 2007 <strong>2008</strong><br />
Public Administration Circular No.22/99 (Retired Public Services) 142 139 730 730<br />
Foreign <strong>Ministry</strong> Circular No. 165 (Public servants in Foreign Service) 35 28 102 139<br />
Trade, Tariff <strong>and</strong> Investment Policy Circular No. 01 & 02 (Public Servants) 2,882 8,802 4,203 10,062<br />
Other 346 154 1,569 163<br />
Total 3,405 9,123 6,604 11,094<br />
Source: Department <strong>of</strong> Sri Lanka Customs<br />
In addition to above concessions, Government has exempted<br />
excise duty on locally assembled/manufactured vehicles<br />
using new vehicle components containing not less than 30<br />
percent <strong>of</strong> domestic value addition recommended by the<br />
<strong>Ministry</strong> <strong>of</strong> Industrial Development.<br />
<strong>Ministry</strong> <strong>of</strong> <strong>Finance</strong> <strong>and</strong> <strong>Planning</strong> Sri Lanka<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2008</strong>
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