Currently, SSCL is charged at the point of sale, where the 2.5% levy is effectively halved to 1.25%, as it is calculated on 50% of turnover under Inland Revenue provisions. The Association said the practical impact of shifting SSCL to the import stage has not been fully understood by the public.
One of the Association’s key budget proposals has been to charge SSCL at the point of import, in order to ensure compliance, as many one-time personal importers have avoided paying the tax under the existing system.
Deputy Minister Dr. Jayantha recently told the media that statements suggesting a new tax on vehicle imports were largely misleading tactics by sellers to create public fear. He clarified that the government has not introduced a new tax but has only shifted the point of collection for SSCL from the point of sale to the customs stage.
From 1 April 2026, SSCL will be collected at the import point and calculated on 100% of turnover, meaning the full 2.5% levy will apply instead of the reduced 1.25% currently paid. In addition, the full SSCL amount will be incorporated into the base value used to calculate VAT, resulting in a further 18% VAT being applied on top of the SSCL.
Industry representatives warn that the combined effect of these changes will substantially increase the overall tax burden on vehicle imports. They say that with SSCL shifting to the import point, the net impact on total customs duty will be far higher than initially anticipated, raising concerns among buyers and importers alike.
