What is Customs Import Duty (CID)?
Customs Import Duty — the first line in Sri Lanka's vehicle import tax stack, set at 20% of the declared CIF value. CID is followed by a 50% surcharge (effectively 10% of CIF), then excise duty, then VAT, then luxury tax where applicable.
Also known as: Customs Import Duty, customs duty, import duty
What is Customs Import Duty (CID)?
Customs Import Duty (CID) is the first line in Sri Lanka’s vehicle import tax stack. Effective February 2025 (per government Gazette 2421/41), CID on motor cars is set at 20% of the declared CIF value.
CID alone is rarely the largest tax line — it’s the foundation that sets up the rest of the stack:
| # | Component | Rate | Base |
|---|---|---|---|
| 1 | CID | 20% | of CIF |
| 2 | Surcharge on CID | 50% of CID (= 10% of CIF) | of CID |
| 3 | Excise duty | varies by fuel + engine | per cc or % of CIF |
| 4 | Luxury tax | 100% of excess | over fuel-specific threshold |
| 5 | VAT | 18% | of (CIF×1.10 + CID + Surcharge + Excise + Luxury) |
CID is paid in LKR at the time of customs declaration, against the CBSL indicative exchange rate of the day. There is no concession or exemption available for personal-use motor cars — the 20% rate applies uniformly.
Worked examples for typical landed-price calculations are in our pricing structure file.
Related terms
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CIF
Cost, Insurance, Freight — the value of a vehicle when it arrives at the Sri Lankan port, before any local taxes are applied. CIF is the base on which all Sri Lanka import taxes (CID, surcharge, VAT, excise, luxury) are calculated.
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Customs surcharge
A 50% surcharge applied on top of Customs Import Duty (CID) — effectively 10% of CIF — added to Sri Lanka's vehicle import tax stack effective February 2025. The surcharge is the second line in the tax cascade after CID and before excise duty.
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VAT
Value Added Tax — applied at 18% in Sri Lanka's vehicle import stack on the cumulative base of CIF×1.10 + CID + Surcharge + Excise + Luxury. VAT is the final tax line before business costs and is often the second-largest contributor to landed price after excise duty.
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Excise duty
A per-cubic-centimetre or per-kilowatt tax applied to motor vehicles imported into Sri Lanka, set by fuel type and engine band. Effective February 2025, excise rates range from LKR 1,000/cc for small petrol PHEVs to LKR 11,000/cc for large petrol engines, plus age surcharges for vehicles older than 3 years.
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Luxury tax
A 100% tax applied to the portion of CIF exceeding fuel-specific thresholds. Effective April 2025 (Gazette 2434/04), the threshold is LKR 5M for petrol and diesel, LKR 5.5M for hybrids and PHEVs, and LKR 6M for EVs. Luxury tax is the single largest line on premium vehicles like the Vellfire, Land Cruiser and BMW 7 Series.
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