In response to criticism from opposition political parties that the President's 2013 Budget has given exemptions to racing car imports, the government clarified that racing cars are not exempt from taxes.
Issuing a statement, the Ministry of Finance and Planning said importation of Go-carts which can be used by only one person and classified under racing cars have been specially identified by a creating a separate HS code 8703.21.62.
The 2013 Budget proposes exempting Go-carts and specially designed racing vehicles from Excise Duty to attract international sporting events and participants to those events to increase revenue from such events. Importations of Go-carts are exempted only from Excise (Special Provisions) Duty and it is liable for payment of 55% of CIF value as other taxes, the Ministry clarified.
Importation of racing cars other than Go-carts is liable for payment of 200% to 350% of CIF value as taxes including Excise (Special Provisions) Duty depending on the cylinder capacity of the imported racing car
Objective of the tax concession to importing racing vehicles is to improve the Sports Economy and Tourism activities and thereby to increase the country's income, the Ministry further said.