Economic Service Charge (Amendment) Bill was certified on 04th of October, 2018 and now available the new Economic Service Charge (Amendment) Act, No. 33 of 2018.
Summary:
Valuation basis of import of vehicles
Prior to the Amendment Act, the import of motor vehicles was liable to ESC on the CIF value of the consignment.
The Amendment Act;
- Vehicles liable to Excise duty
Every import of motor vehicles which are liable to excise duty imposed under the Excise (Special Provisions) Act, is liable to ESC on the amount of Excise duty imposed on such consignment.
- Vehicles which are not liable to Excise duty
Imports of motor vehicles, which are not liable for excise duty imposed under the Excise (Special Provisions) Act, is liable to ESC on the CIF value of the consignment.
Central Bank is not liable to ESC on the unrealized gain from price revaluation and foreign exchange revaluation.
Liable turnover from wholesale of petrol, diesel or kerosene
Only 10% of turnover from wholesale of petrol, diesel or kerosene is liable to ESC. The rate is at 0.5%.
