In Sri Lanka, most of our daily necessities, from food to household products are imported. This should allow us to take advantage global efficiencies to source the cheapest or best products, depending what people want. Unfortunately high taxes and poor trade policies drive up end-costs for consumers in Sri Lanka.
Sri Lanka imposes a variety of taxes on imports: customs duty, VAT, Port and Airport Levy, Nation Building Tax and Cess. Although the maximum customs duty is only 30%, once these other taxes are added the total tax can increase to anywhere from 50% to 100%.
An overview of taxes on food, personal care and household care items are as follows:
Food Items
| Decsription | Gen Duty | VAT | PAL | NBT | CESS | Excise | SCL | Total |
|---|---|---|---|---|---|---|---|---|
| Meat: fresh, chilled, frozen | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Milk & cream: unsweetened | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Milk & cream: sweetened | 20% or 225/= per kg | 15% | 7.50% | 2% | 0% | 0% | 0% | 51% |
| Full Cream Milk Powder, Low Fat Milk Powder, Non- Fat (Skimmed) Milk Powder | 15% | 15% | 7.50% | 2% | 0% | 0% | 0% | 45% |
| Sweetened condensed milk | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Yoghurt | 30% or Rs.550/= per kg | 15% | 7.50% | 2% | 0% | 0% | Rs.625/kg | Rs.625/kg |
| Butter / dairy spreads | 30% or Rs.550/= per kg | 15% | 7.50% | 2% | 0% | 0% | Rs.880/kg | Rs.880/kg |
| Fresh cheese | 30% or Rs.240/= per kg | 15% | 7.50% | 2% | 15% or Rs.150/= per kg | 0% | 0% | 81.90% |
| Processed cheese, | 30% or Rs.240/= per kg | 15% | 7.50% | 2% | 30% or Rs.300/= per kg | 101.20% | ||
| Natural honey | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Potatoes | 0% | 15% | 7.50% | 2% | 0% | 0% | Rs.40/kg | |
| Tomatoes, fresh or chilled. | 30% | 15% | 7.50% | 2% | 30% or Rs.110/= per kg | 0% | 0% | 101.20% |
| B Onions | 0% | 15% | 7.50% | 2% | 0% | 0% | Rs.40/kg | |
| Leeks, cabbage, cauliflower, lettuce, carrots, beans, peas, | 30% | 15% | 7.50% | 2% | 30% or Rs.110/= per kg | 0% | 0% | 101.20% |
| Bananas | 30% | 15% | 7.50% | 2% | 30% or Rs.120/= per kg | 0% | 0% | 101.20% |
| Pineapples | 30% | 15% | 7.50% | 2% | 30% or Rs.120/= per kg | 0% | 0% | 101.20% |
| Guavas, mangoes and mangoesteens : | 30% | 15% | 7.50% | 2% | 30% or Rs.120/= per kg | 0% | 0% | 101.20% |
| Oranges-fresh | 30% | 15% | 7.50% | 2% | 0% | 0% | Rs.65/kg | Rs.65/kg |
| Mandarin, grapefruit, lemon-fresh | 30% | 15% | 7.50% | 2% | 30% or Rs.120/= per kg | 0% | 0% | 101.20% |
| Grapes, fresh | 30% | 15% | 7.50% | 2% | 0% | 0% | Rs.130/kg | Rs.130/kg |
| Apples-fresh | 30% | 15% | 7.50% | 2% | 0% | 0% | Rs.45/kg | Rs.45/kg |
| Apricot, Cherries, peaches, strawberries | 30% | 15% | 7.50% | 2% | 30% or Rs.120/= per kg | 0% | 0% | 101.20% |
| Coffee, whether or not roasted or decaffeinated | 30% | 15% | 7.50% | 2% | 0.15 | 0% | 0% | 81.90% |
| Chillies | 0% | 15% | 7.50% | 2% | 0% | 0% | Rs.25/kg | |
| Wheat flour | 15% or Rs.16/= per kg | 0% | 7.50% | 2% | Rs.15/= per kg | 0% | 0% | |
| Cocoa powder, not containing added sugar or other sweetening matter | 15% | 15% | 7.50% | 2% | 0.05 | 0% | 0% | 51.50% |
| Pasta, noodles, macaroni | 30% | 15% | 7.50% | 2% | 30% or Rs.80/= per kg | 0% | 0% | 101.20% |
| Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); | 30% | 15% | 7.50% | 2% | 30% or Rs.80/= per kg | 0% | 0% | 101.20% |
| Biscuits and Cookies | 30% | 15% | 7.50% | 2% | 35% or 35% of 65% of MRP or | 0% | 0% | 107.60% |
| Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, obtained by cooking, | 30% | 15% | 7.50% | 2% | 35% or Rs.125/= per kg | 0% | 0% | 107.60% |
| Fruit juices, nectars, squashes, cordial | 30% | 15% | 7.50% | 2% | 35% or Rs.115/= per kg | 0% | 0% | 107.60% |
| Sauces and mustard | 30% | 15% | 7.50% | 2% | 30% or Rs.125/= per kg | 0% | 0% | 101.20% |
Personal Care Items
| Description | Gen Duty | VAT | PAL | NBT | CESS | Excise | SCL | Total |
|---|---|---|---|---|---|---|---|---|
| Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters | 30% | 15% | 7.5% | 2% | Rs.100/= per kg | 0% | 0% | 62.60% |
| Perfumes, colognes, toilet waters | Free | 15% | 7.5% | 2% | 0% | 0% | 0% | 27.50% |
| Beauty or make-up preparations and preparations for the care of the skin | 30% | 15% | 7.5% | 2% | Rs.550/= per kg | 0% | 0% | 62.60% |
| Shampoo (India, due to FTA) | 0% | 15% | 7.5% | 2% | Rs.550/= per kg | 0% | 92.30% | |
| Shampoo (Thailand) | 30% | 15% | 7.5% | 2% | Rs.550/= per kg | 0% | 196.10% | |
| Dentifrices (toothpaste) | 30% | 15% | 7.5% | 2% | 35% or Rs.275/= per kg | 0% | 0% | 107.60% |
| Toothbrushes | 30% | 15% | 7.5% | 2% | 20% or Rs.75/unit | 0% | 0% | 88.30% |
| Pre-shave & aftershave (India, due to FTA) | 0% | 15% | 7.5% | 2% | Rs.550/= per kg | 0% | 0% | 120.20% |
| Pre-shave & aftershave (Pre Singapore FTA) | 30% | 15% | 7.5% | 2% | Rs.550/= per kg | 0% | 0% | 117.30% |
| Soap- tiolet, laundry | 30% or Rs.60/- per kg | 15% | 7.5% | 2% | 25% or 25% of 65% of MRP or 150/-kg | 0% | 0% | 94.80% |
| Baby soap, Bathing bars | 30% or Rs.60/- per kg | 15% | 8% | 2% | 25% or 150/-kg | 0% | 0% | 94.80% |
| Wet wipes | 30% | 15% | 7.5% | 2% | 30% or Rs.350/= per kg | 0% | 0% | 101.20% |
| Toilet paper n rolls of a width not exceeding 15 | 30% | 15% | 7.5% | 2% | 10% | 0% | 0% | 74.30% |
| Toilet paper - other | 15% | 15% | 7.5% | 2% | 10% | 0% | 0% | 49.50% |
| Handkerchiefs, cleansing or facial tissues and towels | 30% | 15% | 7.5% | 2% | 10% | 0% | 0% | 74.30% |
| Safety razor blades, including razor blade blanks in strips | 30% | 15% | 7.5% | 2% | 62.60% | |||
| Paper knives, letter openers, | 30% | 15% | 7.5% | 2% | Rs.50/kg | 62.60% |
||
| Manicure or pedicure sets and instruments (including nail files) | 30% | 15% | 7.5% | 2% | Rs.50/kg | 62.60% | ||
| Sanitary towels (pads) and tampons, napkins | 30% | 15% | 7.5% | 2% | 0% or Rs.300/kg | 0% | 0% | 54.50% |
| Diapers - babies and adults | 30% | 15% | 7.5% | 2% | 0% | 0% | 0% | 62.60% |
Household Care Items
| Description | Gen Duty | VAT | PAL | NBT | CESS | Excise | SCL | Total |
|---|---|---|---|---|---|---|---|---|
| Washing preparations | 30% | 15% | 7.50% | 2% | 20% or Rs.25/= per kg | 0% | 0% | 88.30% |
| Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, | 30% | 15% | 7.50% | 2% | 15% or Rs.30/= per kg | 0% | 0% | 81.90% |
| Candles, tapers and the like. | 30% | 15% | 7.50% | 2% | 30% or Rs.75/= per kg | 0% | 0% | 101.20% |
| Mosquito coils | 30% | 15% | 7.50% | 2% | 25% | 0% | 0% | 94.80% |
| Mosquito Mats | Free | 15% | 7.50% | 2% | 0% | 0% | 0% | 27.50% |
| Hydraulic brake fluids and other prepare liquids for hydraulic transmission, | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Trunks, suitcases, rucksacks, handbags etc | 30% | 15% | 7.50% | 2% | Rs.150/= per kg (some at 200/) | 0% | 0% | 62.60% |
| Exercise books | 15% | 15% | 7.50% | 2% | 45% | |||
| Waterproof footwear | Free | 15% | Free | 2% | 15% or Rs.500/- per pair | 0% | 0% | 46.80% |
| Other footwear | Free | 15% | Free | 2% | 15% or Rs.600/- per pair | 0% | 0% | 46.80% |
| Umbrellas | 30% | 15% | 7.50% | 2% | 30% or Rs.100/= per unit | 0% | 0% | 101.20% |
| Spectacle frames - plastic | 30% | 0% | 7.50% | 2% | 0% | 0% | 0% | 40.50% |
| Spectacle frames - Metal | 15% or 65/- per pair | 0% | 7.50% | 2% | 0% | 0% | 0% | 25.20% |
| Sunglasses | Free | 0% | 7.50% | 2% | 0% | 0% | 0% | 9.90% |
| Cameras | Free | 0% | 0% | 2% | 0% | 0% | 0% | 2.20% |
| Wrist watches and other watches | Free | 0% | 0% | 2% | 0% | 0% | 0% | 2.20% |
| Toy Tricycles, scooters, pedal cars, dolls | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
| Remote controlled toys, stuffed toys | 15% | 15% | 7.50% | 2% | 0% | 0% | 0% | 45.00% |
| Broom, brushes | 30% | 15% | 7.50% | 2% | 20% or Rs.75/unit | 0% | 0% | 88.30% |
| Ball point pens; felt tipped and other porous-tipped pens and markers; | 30% | 15% | 7.50% | 2% | 10% or Rs.15/unit | 0% | 0% | 74.30% |
| Pencils (other than pencils of heading 96.08), crayons, pencil leads, pastels | 30% | 15% | 7.50% | 2% | 0% | 0% | 0% | 62.60% |
Source: Sri Lanka Customs Website, Tariff Changes, 2018