Sri Lanka Imposes New Import Duty System for Tyres
A recent Government move to end revenue losses amounting to several billions of rupees as a result of under-invoicing by some unscrupulous importers of tyres, has been welcomed by local industry and legitimate importers, the Sri Lanka Daily News reported. Effective from 15 May 15, importers of tyres are required to pay a tyre weight based duty of 80 rupees per kg or 28 per cent of invoiced value, whichever is higher. Previously, duty was computed at 28 per cent of value only. Local manufacturers also see the system as fairer. Such businesses have experienced hikes of 72 per cent in fuel prices since April 2006, and a 25 per cent increase in electricity costs.