Nov 16, Colombo: In response to criticism from opposition political parties that President's 2013 budget has given exemptions to race car imports, the government today clarified that race cars are not exempted from taxes.
Issuing a statement the Finance and Planning Ministry said today importation of Go-carts which can be used for travelling by only one person and classified under racing cars have been specially identified by a creating a separate HS code 8703.21.62.
The 2013 budget proposes exempting Go-carts and specially designed racing vehicles from Excise Duty to attract international sporting events and participants to those events to increase revenue from such events to US$ 500 million by 2016 from the current US$ 50 million.
Importations of Go-carts are exempted only from Excise (Special Provisions) Duty and it is liable for payment of 55% of CIF value as other taxes, the Ministry clarified.
Importation of racing cars other than Go-carts is liable for payment of 200% to 350% of CIF value as taxes including Excise (Special Provisions) Duty depending on the cylinder capacity of the imported racing car.
Objective of the tax concession to importing racing vehicles is to improve the Sports Economy and Tourism activities and thereby to increase country's income, the Ministry said.