Finance ACt – 1995

Arrangement of Sections

1. Short title.

PART I

Repealed

2. Repealed.

PART II

Imposition of a Luxury Motor Vehicle Levy, Semi-luxury Motor
Vehicle Levy and Semi-Luxury Dual Purpose Motor Vehicle Levy

3. Annual luxury motor vehicle levy.

4. Annual semi-luxury motor vehicle levy.

5. Annual semi-luxury dual purpose motor vehicle levy.

5A. Amendment of rates of luxury, semi luxury and semi-luxury dual purpose motor vehicle levies by Resolution of Parliament.

 

PART III

Collection of Levy

6. Levy to include luxury motor vehicle levy, semi-luxury motor vehicle levy and semi-luxury dual purpose motor vehicle levy.

7. Registered owner to pay the levy.

7A. Exemption from diesel motor vehicle levy for non-user.

8. Insurer to collect the levy.

8A. When registered owner is the State of a Local Authority.

8B. Levy to be collected at the time of renewal of registration.

9. Registered owner to prove payment of the levy.

10. Notice to defaulter.

10A. Power of Commissioner to waive or reduce penalty.

10B. Power of Commissioner to set off or refund penalty.

11. Recovery of Levy.

PART IV

Miscellaneous

12. Repealed.

13. Regulations.

14. Exemptions.

15. Administration.

16. Traditional provisions.

17. Interpretation.

CHAPTER II

Imposition and Collection of Cess on Textiles and Textile Products
Exported Under a Textile Quota Allocation

18. Levy of cess on textiles and textile products exported under textile quota allocation.

19. Cess to be paid to the relevant authority.

20. Default of the payment of cess.

21. Cess to be credited to consolidated Fund.

22. Validation of cess imposed under section 18.

23. Transitional provisions.

24. Interpretation.

25. Sinhala text to prevail in case of inconsistency.

SCHEDULES

16 of 1995,

24 of 1999,

4 of 2003,

15 of 2011,

12 of 2012,

12 of 2013,

35 of 2018.

AN ACT to enact the provisions of law necessary to give legal force to certain proposals financial and otherwise for the Financial Year commencing on January 1.

[Date of Commencement: 31st August, 1995]

1. Short title.

This Act may be cited as the Finance Act.

Part I

CHAPTER I

[PART I rep by s 2 of Act 4 of 2003.]

2. …

[S 2 rep by s 2 of Act 4 of 2003.]

PART II

Imposition of a Luxury Motor Vehicle Levy, Semi-luxury Motor Vehicle Levy and Semi-Luxury Dual Purpose Motor Vehicle Levy

3. Annual luxury motor vehicle levy.

(1) There shall be charged, levied and paid, on every luxury motor vehicle (other than a semi-luxury dual purpose motor vehicle or a wagon) of which the first year of registration falls prior to January 1, 2019—

[S 3(1) am by s 11 of Act 35 of 2018.]

(a) where the first year of registration falls prior to January 1, 2011, for every year commencing on or after April 1, 1995, but for a period not more than seven years ending prior to April 1, 2011, at the respective rates set out in Part I of the First Schedule to this Act;

(b) where the first year of registration or the payment due date of any year, falls within the period commencing on January 1, 2011 and ending prior to November 22, 2011, at the respective rates set out in Part II of the First Schedule to this Act; and

(c) where the first year of registration or the payment due date of any year, falls after November 22, 2011, for a period not more than seven years from such date, at the respective rates set out in Part III of the First Schedule to this Act,

a luxury motor vehicle levy. The levy payable for every such year shall be paid by the registered owner of the luxury motor vehicle on or before the relevant date:

Provided however, where any part of the period of seven years referred to in paragraph (a) above, continues after January 1, 2011 the luxury motor vehicle levy payable on or after November 22, 2011, in respect of such period shall be paid at the respective rates set out in Part III of the First Schedule to this Act;

Provided further , such luxury motor vehicle levy shall not be charged in respect of any luxury motor vehicle owned by—

(a) an organization or an individual to whom the provisions of Diplomatic Privileges Act, No. 9 of 1996 is applicable; or

(b) a Department or a Ministry of the Government or of a Provincial Council.

(2) For the purposes of this section, the “Provincial Council” means a Provincial Council established under Chapter XVIIA of the Constitution.

[S 3 subs by s 6 of Act 12 of 2012.]

4. Annual semi-luxury motor vehicle levy.

(1) There shall be charged, levied and paid, on every semi-luxury motor vehicle (other than a semi-luxury dual purpose motor vehicle or a wagon) of which the first year of registration falls prior to January 1, 2019—

[S 4(1) am by s 12 of Act 35 of 2018.]

(a) where the first year of registration falls prior to January 1, 2011, for every year commencing on or after April 1, 1995,but for a period not more than seven years ending prior to April 1, 2011, at the respective rates set out in Part I of the Second Schedule to this Act;

(b) where the first year of registration or the payment due date of any year falls within the period commencing on January 1, 2011 and ending prior to November 22, 2011, at the respective rates set out in Part II of the Second Schedule to this Act; and

(c) where the first year of registration or the payment due date of any year, falls after November 22, 2011, for a period not more than seven years from such date, at the respective rates set out in Part III of the Second Schedule to this Act,

a semi-luxury motor vehicle levy. The levy payable for every such year shall be paid by the registered owner of the semi-luxury motor vehicle on or before the relevant date:

Provided however, where any part of the period of seven years referred to in paragraph (a) above, continues after January 1, 2011 the semi-luxury motor vehicle levy payable on or after November 22, 2011, in respect of such period shall be paid at the respective rates set out in Part III of the Second Schedule to this Act:

Provided further, such semi-luxury motor vehicle levy shall not be charged in respect of any semi-luxury motor vehicle owned by—

(a) an organization or an individual to whom the provisions of Diplomatic Privileges Act, No. 9 of 1996 is applicable; or

(b) a Department or a Ministry of the Government or of a Provincial Council.

(2) For the purposes of this section, the “Provincial Council” means a Provincial Council established under Chapter XVIIA of the Constitution.

[S 4 subs by s 7 of Act 12 of 2012.]

5. Annual semi-luxury dual purpose motor vehicle levy.

(1) There shall be charged, levied and paid, on every semi-luxury dual purpose motor vehicle (other than a wagon) of which the first year of registration falls prior to January 1, 2019—

[S 5(1) am by s 13 of Act 35 of 2018.]

(a) where the first year of registration falls prior to January 1, 2011, for every year commencing on or after April 1, 1995, but for a period not more than seven years ending prior to April 1, 2011, at the respective rates set out in Part I of the Third Schedule to this Act;

(b) where the first year of registration or the payment due date of any year falls within the period commencing on January 1, 2011 and ending prior to November 22, 2011, at the respective rates set out in Part II of the Third Schedule to this Act; and

(c) where the first year of registration or the payment due date of any year, falls after November 22, 2011, for a period not more than seven years from such date, at the respective rates set out in Part III of the Third Schedule to this Act,

a semi-luxury dual purpose motor vehicle levy. The levy payable for every such year shall be paid by the registered owner of the semi-luxury dual purpose motor vehicle on or before the relevant date:

Provided however, where any part of the period of seven years referred to in paragraph (a) above, continues after January 1, 2011 the semi-luxury dual purpose motor vehicle levy payable on or after November 22, 2011, in respect of such period shall be paid at the respective rates set out in Part III of the Third Schedule to this Act:

Provided further, such semi-luxury dual purpose motor vehicle levy shall not be charged in respect of any semi-luxury dual purpose motor vehicle owned by—

(a) an organization or an individual to whom the provisions of Diplomatic Privileges Act, No. 9 of 1996 is applicable; or

(b) a Department or a Ministry of the Government or of a Provincial Council.

(1A) Notwithstanding the preceding provisions of this section such semi-luxury dual purpose motor vehicle levy shall not be charged, with effect from January 1, 2013, in respect of a light truck registered as a dual purpose vehicle under the Motor Traffic Act.

[S 5(1A) ins by s 2 of Act 12 of 2013.]

(2) For the purposes of this section, the “Provincial Council” means a Provincial Council established under Chapter XVIIA of the Constitution.

[S 5 subs by s 8 of Act 12 of 2012.]

5A. Amendment of rates of luxury, semi luxury and semi- luxury dual purpose motor vehicle levies by Resolution of Parliament.

(1) The Parliament may by Resolution amend the rates of the—

(a) luxury motor vehicle Levy, set out in Part I, Part II and Part III of the First Schedule hereto;

(b) semi-luxury motor vehicle Levy, set out in Part I, Part II and Part III of the Second Schedule hereto;

(c) semi-luxury dual purpose motor vehicle Levy, set out in Part I, Part II and Part III of the Third Schedule hereto,

by increasing or decreasing the amount payable as levy.

[S 5A(1) ins by s 9 of Act 12 of 2012.]

(2) Upon the resolution seeking to amend the rates, being approved by the Parliament in accordance with the Standing Orders of the Parliament, the Secretary to the Ministry of the Minster shall publish a Notification in the Gazette setting out the rates as amended.

[S 5A(2) ins by s 9 of Act 12 of 2012.]

PART III

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