Sri Lanka to charge retrospective taxes on converted vehicles

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

Jan 04, 2012 (LBO) - Sri Lanka is set to charge millions of rupees of taxes on a retrospective basis from owners of pick-up trucks and jeeps who have converted them under existing rules, according to a new cabinet decision.
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In free countries with strong constitutional guarantees of liberty to citizens, so called ex post facto laws are specifically prohibited.

The state information office quoting a cabinet paper from the ministry of transport said single cab pick-up trucks imported under a lower duty structure have been converted to double cabs which attract a higher duty.

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Land Rover defender jeeps auction by state entities were also being converted 5-door luxury station wagons by changing the body.

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"The difference between the tax payable for a new/used imported vehicle similar to that of the converted vehicle on the date of registration of the converted vehicle and the tax already paid on the converted vehicle at the time of its importation, should be paid as a surcharge to the Government," the information office quoted the cabinet paper.

"The registration of such converted vehicles under the above conditions should be completed by 2013-03-31 and registration of such vehicles after the above date s

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