Sri Lanka revamps tax rules for online imports

Sri Lanka’s Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, addressed public concerns today (July 3) regarding recent changes to how taxes are applied to goods purchased through international platforms such as AliExpress and eBay.

His statement was issued via a Facebook post as social media buzzed with criticism over the new tax policy.

The Deputy Minister clarified that the Sri Lankan government has not introduced a new tax. Instead, it has revised the method by which customs duty is calculated for individually imported parcels. Previously, a flat fee of Rs. 800 was sufficient to clear most parcels under 1 kg, and items with under-declared values often bypassed taxes altogether.

“This system was widely misused, and some took serious advantage of it,” Abeysinghe said, adding that the loophole posed a threat to locally manufactured products. He emphasized that the new system is designed to prevent such abuse and foster fairer competition in the market.

Under the revised rules, taxes are now calculated based on the HS code (Harmonized System code) of the item, an international classification method, rather than by parcel weight. This change aims to bring greater transparency and accuracy to customs procedures.

However, some members of the public have expressed concern that items imported for educational and research purposes are also being taxed under the new system. Minister Abeysinghe acknowledged this issue, suggesting it may be a temporary problem caused by the absence of specific regulations to exempt such goods.

“We will work to introduce a system that provides relief for educational and research equipment, depending on their HS codes and quantities,” he assured. He encouraged researchers who are genuinely affected to submit the relevant HS codes in writing to the Sri Lanka Customs Department.

Criticizing those who are “doing politics through AliExpress,” the Deputy Minister urged the public not to panic. He described the reform as part of the government’s broader effort to prevent dumping, eliminate unfair profits, and build a stronger economy.

“This is a system change,” he concluded, calling for public support to help establish a fairer and more accurate framework for the country.