Duty free vehicle permits for state employees

The Ministry of Finance says that the revised circular on duty free vehicle permits for government employees has been issued.

Cabinet approval was granted on July 16 for the reintroduction of an amended program of providing concessionary vehicle permits for public officers under which a permit holder will be entitled to a 50 percent waiver on all taxes payable on an imported vehicle valued up to USD 30,000

Finance Minister Ravi Karunanayake had presented a cabinet paper on this subject on March 26 this year. The proposal was accepted on July 16 and the industry and investment department of the finance ministry had issued the necessary circular (No. 01/2016).

The government has issued over 38,000 vehicle permits to state officers under the previous concessionary scheme since 2010 and the tax waived in this regard exceeds Rs. 143 billion.

Public officers, executive officers in state corporations and statutory boards, doctors and legal officers in government service, vice chancellors, university lecturers and executive non-academic staffers of the universities are entitled to this concession.

According to the new circular, the period of service completed by individual officers in the state sector will be taken into consideration for the issue of the vehicle permits. 

An applicant should have completed more than six years of state service to be eligible for the facility but this period will differ for officers of state corporations and statutory boards.