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Question
Dhaham
Dear Friends
Central Bank publishes a three exchange rates daily. They are
1) Indicative Rate
2) Buying Rate
3) Selling Rate
Out of them what is the rate used for calculation of luxury tax. For an example, if the CIF value of a certain vehicle is Euro 18,187.00, then for today (05/02/2020)
The Indicative Rate is 1 Euro = LKR 200.2883
The Selling Rate is 1 Euro = LKR 203.5865
If the Luxury Tax is calculated using Indicative Rate, then Lux Tax will be (18,187 x 200.2883) - 3,500,000.00 = LKR 142,643.31
If the Luxury Tax is calculated using Selling Rate, then Lux Tax will be (18,187 x 203.5865) - 3,500,000.00 = LKR 202,627.67
Please let me know if you have any idea on this.
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