1. Budget 2018 Thanuja perera department of fiscal policy ministry of finance

2. Agenda Value Added Tax Nation Building Tax Income Tax ESC
Debt Repayment Levy
Cellular Tower Levy
SMS Advertisement Levy
Carbon Tax
Luxury Tax on Motor Vehicles
Excise (Ordinance) Duty
Excise (Special provisions) Duty
Custom Duty
Cess
PAL
Other Fees and Charges

3. Value Added Tax
New Exemptions Solar tracker classified under HS Code
With the objective of consolidating the number of towers used by mobile operators

4. Value Added Tax Removal of Exemptions
Import/ import and supply of following goods
Plants & Flowers
Plastic Beads
Yarn/Fabric
Woods & Articles
Dyes
Glass Beads
Plants & Machinery/ Industrial Racks
Electronic Goods
Aero planes & Parts
Spectacles
Camera & Projectors
Watches
With the objective of consolidating the number of towers used by mobile operators

5. Value Added Tax Removal of Exemptions
2. Sale of Condominium Housing Units
VAT refund scheme for foreigners at the airports and sea ports will be implemented from
VAT amendments will be effective from
With the objective of consolidating the number of towers used by mobile operators

6. Nation Building Tax Exemptions
non-motorized equipment and accessories for water sports (Kayaks, Canoes, Kite Surfing and diving)
non-powered equipment and accessories for aero sports (Hang Gliding, Ballooning, dirigibles, Parachutes and Para- Gliders)
gem stones for cutting and re-export purposes
equipment enabling advanced technology agriculture practices, including greenhouses, poly tunnels and materials for the construction of greenhouses, by any grower
NBT exemption on local Coconut Oil & Oil related products will be extended for one year
With the objective of consolidating the number of towers used by mobile operators

7. Nation Building Tax - Removal of Exemptions
Exemption on liquor will be removed
NBT amendments will be effective from
With the objective of consolidating the number of towers used by mobile operators

8. Income Tax
Profits and income arising from backward integrated activities relating to agriculture will be taxed at the rate of 14%
Backward integrated activities include developing fertilizer, soil management practices and storage of agricultural produce.

9. Economic Service Charge
ESC base for imported motor vehicles will be amended as follows;
i. Motor vehicles liable for Excise duty
– Payable Excise Duty
ii. Motor vehicles not liable for Excise duty
– CIF value
ESC Amendments will be effective from
With the objective of consolidating the number of towers used by mobile operators

10. Finance Act Financial Services Debt Repayment Levy
Imposed on all transactions entered in to by a Banks and Financial Institutions
The tax rate is 20 cts per Rs.1,000 worth transaction (i.e., 0.02%)
Levy is allowed to treat as expense for income tax purpose
It is expected that this tax will be similar to the financial transaction levy proposed in the last budget. The levy will be charged on total cash transactions and should be paid by the financial institutions.
Loan to value ratio for the electric buses, three wheelers, domestically assembled electric three wheelers, cars and buses will be revised to 90/10.

11. Finance Act Telecommunication Industry Cellular Tower Levy
Imposed on Mobile Tower Operators
Rate is Rs. 200,000 per month per tower
SMS Advertising Levy
On bulk SMS advertisements
Rate is 25 cents per SMS
Payable by the advertiser
With the objective of consolidating the number of towers used by mobile operators

12. Finance Act Automobile Carbon Tax Electric cars are exempted
Type of vehicle
Less than 05 years
5 to 10 years
Over 10 years
Hybrid (Petrol/Diesel)
25 Cts per cm3
50 Cts per cm3
Rs.1.00 per cm3
Fuel (Petrol/Diesel)
Rs.1.50 per cm3
Passenger bus
Rs.1,000/-
Rs.2,000/-
Rs.3,000/-
With the objective of consolidating the number of towers used by mobile operators

13. Finance Act Automobile 2. Luxury Tax
One-time payment luxury tax will be introduced in lieu of the present system of payment over 7 years
The present system will be continued for the vehicles already registered
Tax depends on the band of engine capacity or motor power of the vehicle
With the objective of consolidating the number of towers used by mobile operators

14.  Vehicle Type
Super Luxury
(Rs.)
Luxury
Semi- Luxury
Dual purpose (Petrol/diesel) 2200cm3<
250,000
Motor Car
Petrol cm3 < x ≤ 2500 cm3
Diesel cm3 < x ≤ 3000 cm3
Electric 200 kW < x ≤ 300 kw
500,000
Petrol cm3 < x ≤ 3500 cm3
Diesel cm3 < x ≤ 4000 cm3
Electric kW < x ≤ 400 kw
1,000,000
Petrol cm3 <
Diesel cm3 <
Electric kW <
2,000,000

15. Excise Duty under Excise Ordinance
Liquor
Alcohol volume based Excise Duty depending on the type of liquor is introduced as follows:
Hard liquor - Rs. 3,300/- per litre of alcohol
Beer - Rs. 2,400/- per litre of alcohol
Wine - Rs. 2,400/- per litre of alcohol
Non-potable alcohol
Excise duty is imposed on import of non-potable alcohol at Rs.15/- per Kg
With the objective of consolidating the number of towers used by mobile operators

16. Excise Duty under Excise Ordinance
Raw material for manufacturing ethanol
Excise Duty is imposed on raw materials used for manufacturing ethanol
Rate of liquor license fee and the procedure for issuance of new liquor license will be simplified (w.e.f )
Type of raw material
Proposed Duty (Rs.)
Toddy
Rs.05/- per litre
Molasses/Maize/Rice/Fruits
Rs.10/- per Kg
With the objective of consolidating the number of towers used by mobile operators

17. Excise (Special Provisions) Duty
Canned Beer
Excise (Special Provisions) Duty applicable on canned beer will be removed
Beverages with added sugar
Excise duty based on the quantum of sugar contained is introduced for the beverages with added sugar
Rate is 50cts per gram of sugar

18. Excise (Special Provisions) Duty
Plastic resin
Excise duty on plastic resin is introduced at Rs.10/kg
This duty will be applicable for items classified under the HS Codes , , , and

19. Excise (Special Provisions) Duty
Motor Vehicle
Ad-valorem rate is removed
Duty on electric vehicles is reduced and calculate on the power of the engine (kw)
Tax on a three-wheeler is increased by Rs.50,000/-
Tax concession on permit vehicle is defined in Rupee value and NOT as percentage of duty

20. Excise (Special Provisions) Duty
Motor Vehicle
Duty is revised for off-road electric sports vehicles classified under HS Code , , ,

21. Motor Vehicle (Petrol/ Petrol Hybrid)
Engine capacity
Petrol fuel
(Rs. Per cm3)
Petrol hybrid
≤ 1000cm3
1,750
1,250
1000cm3 < x ≤ 1300 cm3
2,750
2,000
1300cm3 < x ≤ 1500 cm3
3,250
2,500
1500cm3 < x ≤ cm3
4,000
3,000
1600cm3 < x ≤ cm3
5,000
4,500
1800cm3 < x ≤ cm3
6,000
2000cm3 < x ≤ cm3
7,000
2500cm3 < x ≤ cm3
8,000
2750cm3 < x ≤ cm3
9,000
3000cm3 < x ≤ cm3
10,000
4000 cm3<
11,000
10,00

22. Motor Vehicle (Diesel/ Dieasel Hybrid)
Engine capacity
Diesel fuel
(Rs. Per cm3)
Diesel hybrid
≤ 1500cm3
4,000
3,000
1500cm3 < x ≤ 1600 cm3
5,000
1600cm3 < x ≤ 1800 cm3
6,000
1800cm3 < x ≤ cm3
7,000
2000cm3 < x ≤ cm3
8,000
2500cm3 < x ≤ cm3
9,000
2750cm3 < x ≤ cm3
10,000
3000cm3 < x ≤ cm3
11,000
4000 cm3<
12,000

23. Electric Vehicle Motor power Unregistered (brand new) vehicle
(Rs. Per kw)
Used vehicle
≤ 50 Kw
7,500
15,000
50Kw < x ≤ 100 Kw
12,500
25,000
100 Kw < x ≤ 200 Kw
40,000
200 Kw
55,000

24. Three Wheeler i. Petrol - Rs.2,100 per cm3
ii. Diesel - Rs.1,250 per cm3
iii. Electric 
Unregistered (brand new) - Rs.7,500 per Kw
Registered (used) - Rs.10,000 per Kw

25. Vehicle Permit for Public Sector Employees
Upper ceiling of excise duty concession of vehicle permits is defined in rupee value without changing the existing concession rate
Upper ceiling of CIF value of imported vehicles is removed
Restriction on transferability is removed

26. Custom Import Duty New Exemptions
Crust (semi processed) leather for further processing (Tanning Industry)
Supply of raw materials for leather products industry.
Machinery, equipment, accessories and raw materials or intermediate materials, to be used only for manufacturing of biodegradable packaging products and materials.

27. CESS Duty
Cess to be removed on 253 items facilitating the emerging sectors namely, tourism, value adding industries and other industries.
Cess to be revised on 22 items facilitating the availability of goods for value addition and consumption purposes.

28. Ports and Airports Development levy
Exemptions
Non-motorized equipment and accessories for water sports (Kayaks, Canoes, Kite Surfing and diving)
Non-powered equipment and accessories for aero sports (Hang Gliding, Ballooning, dirigibles, Parachutes and Para-Gliders)
Machinery and equipment including solar panels and, storage batteries which will be imported for the establishment of solar charging stations.
upfront payment on the sale of yachts built by BOI companies to the local BOI charter companies,

29. Other Fees and Charges
The rates of fees and charges of government agencies which have not been revised in last 03 years will be increased by 15%

30. Land (Restriction on Alienation) Act
Restriction on land ownership applicable for foreign companies will be removed for PLCs
Foreigners will be permitted to own the condominium units below the 4th floor

31. Thank You