Question 1

What is the total cost to import a Honda Vezel e:HEV Z 2025 to Sri Lanka?

Accepted Answer

Based on a FOB price of JPY 3,150,000 and freight and insurance of JPY 100,000, the CIF value in LKR works out to approximately LKR 6,500,000 at an exchange rate of 1 JPY = 2 LKR. After all applicable taxes  including Customs Import Duty, Excise Duty, Luxury Tax, Surcharge, and VAT  total taxes amount to LKR 10,930,346, bringing the total landed cost to LKR 17,430,346. This figure does not include port handling charges, agent fees, registration, or insurance.

Question 2

How is the import tax broken down for the Honda Vezel hybrid in Sri Lanka?

Accepted Answer

The tax breakdown for the Vezel e:HEV Z under HS Code 8703.40.35 is as follows: Customs Import Duty (CID)  LKR 1,300,000; Surcharge on CID  LKR 650,000; Excise Duty  LKR 5,161,200; Luxury Tax  LKR 800,000; and VAT  LKR 2,658,866. Social Security Contribution Levy (SSCL) of LKR 360,280 (2.5% on the VAT-equivalent base) applies, while PAL and CESS are zero, for this vehicle category. Excise Duty is the dominant cost, accounting for nearly half of the total tax burden, which is typical for hybrid passenger cars in the 1,001–1,500 cc engine range.

Question 3

Is the Honda Vezel hybrid taxed less than a petrol-only SUV of similar size in Sri Lanka?

Accepted Answer

Yes, petrol-electric hybrid vehicles like the Vezel e:HEV generally attract lower excise duty rates than equivalent pure-petrol vehicles under Sri Lanka's customs tariff structure, as hybrid propulsion is incentivised through more favourable tax slabs. A comparable 1,500 cc pure-petrol SUV would typically face a higher excise rate, resulting in a meaningfully larger total tax bill. However, the Vezel still incurs a Luxury Tax of LKR 800,000, which applies based on vehicle value thresholds regardless of propulsion type.

Question 4

Why is the effective tax rate on the Honda Vezel so high at 168.2%?

Accepted Answer

Sri Lanka applies multiple cascading taxes on imported vehicles, and each tax layer is calculated not just on the CIF value but in some cases on a value that includes previously levied duties  this stacking effect pushes the effective rate well above any single stated duty percentage. For the Vezel e:HEV Z, with a CIF of LKR 6,500,000 and total taxes of LKR 10,930,346, the effective burden comes to 168.2% of CIF. This is broadly consistent with what most mid-range hybrid passenger cars face under current Sri Lankan import policy, and is actually lower than the rates applied to higher-displacement or pure-petrol equivalents.

Question 5

What additional costs should I budget for beyond the import taxes on a Honda Vezel?

Accepted Answer

The LKR 17,430,346 total landed cost covers only CIF value and all import-related taxes. Sri Lankan buyers should additionally budget for port and customs agent handling fees (typically LKR 50,000–150,000), vehicle registration at the Department of Motor Traffic, provincial revenue licence fees, and comprehensive motor insurance  which for a vehicle valued above LKR 17 million can run LKR 200,000–400,000 annually depending on the insurer and coverage. If financing the purchase, interest costs over the loan term will also add substantially to the real total cost of ownership.

Vehicle	FOB Price	Total Taxes	Total Cost	Tax Rate
Honda Vezel e:HEV Z 2025	JPY 3,150,000	LKR 10,930,346	LKR 17,430,346	168.2%
Toyota Raize Hybrid Z e-SMART 2025	JPY 2,300,000	LKR 6,713,879	LKR 11,493,879	140.5%
Nissan Magnite 1.0 Turbo CVT 2025	JPY 1,650,000	LKR 5,507,267	LKR 9,007,267	157.4%

Honda Vezel e:HEV Z 2025 Import Tax in Sri Lanka

Specifications

About the Honda Vezel e:HEV Z 2025

Key Highlights

Tax Breakdown

Tax Buildup

Tax Composition

Is Honda Vezel e:HEV Z 2025 Your Dream Vehicle?

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Frequently Asked Questions

Tax Component	Rate	Amount (LKR)
CIF Value (Cost + Insurance + Freight)		LKR 6,500,000
Customs Import Duty (CID)	20%	LKR 1,300,000
Surcharge on CID	50%	LKR 650,000
Excise Duty	See excise schedule	LKR 5,161,200
Luxury Tax	Tiered	LKR 800,000
Ports & Airports Levy (PAL)	Exempt	LKR 0
CESS	N/A	LKR 0
SSCL	2.5%	LKR 360,280
VAT	18%	LKR 2,658,866
Total Taxes	168.16% of CIF	LKR 10,930,346
Total Import Cost		LKR 17,430,346