He has explained that the decision to create a new category was made following the government's decision to exempt some racing cars from taxes.
Under the new system, all cars, including racing cars, are to be categorized under normal cars.
Importation of Go-carts which can be used for travelling by only one person and classified under racing cars have been specially identified by a creating a separate HS code 8703.21.62, according to the Finance and Planning Ministry .
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.
President Mahinda Rajapaksa in the budget for 2013 announced that the tax on racing cars imported to Sri Lanka will be relaxed to improve the Sports Economy and Tourism activities and to increase country's income from those activities.