Vehicle prices up after Budget
Due to the revision of Excise Duty on motor vehicles and implementation of the luxury tax on the recent budget proposal, the local vehicle prices would be increased by a minimum of Rs.150,000, Vehicle Importers Association of Sri Lanka (VIASL) Chairman Ranjan Peiris said.
After imposing taxes, imported vehicle prices had been increased between Rs.150,000 and Rs.600,000.
Accordingly, subsequent to customs import taxes, vehicles with engine capacity less than 800cc such as Suzuki Alto, Daihatsu Mira, Toyota Pixis and Honda N Box have gone up by Rs.150,000.
Vehicles with engine capacity less than 1000cc such as Toyota Vios, Toyota Passo and some Honda models are up by Rs.250,000.
Vehicles with engine capacity less than 1300cc such as Toyota C-HR and Toyota Yaris have gone up by Rs.500,000.
A Rs.600,000 increase in Petrol vehicles with engine capacity less than 1500cc such as Toyota Premio, Toyota Allion and Honda CR-V.
Prices have gone up by Rs. 250,000 on Hybrid vehicles with engine capacity less than 800cc such as Suzuki Wagon R and Suzuki Spacia.
Hybrid vehicles with engine capacity less than 1500cc such as Toyota Axio, Honda Vezel and Honda Grace hare up by Rs.500,000.
However, the import tax on electric motor vehicles of 70 kw were brought down by Rs. 175,000.
“We do not import electric vehicles as they are not fast selling. Reducing taxes on vehicles which are not fast-selling is useless. Before reducing the taxes the government should provide infrastructure and accessory facilities,” Mr. Pieris said.
Meanwhile, following the budget proposal, the Excise Duty on vehicles imported as chassis fitted with engines will be reduced.
Accordingly, the Excise Duty on hearses, single cabs will be revised.
The Excise Duty on the hybrid and electric vans will be revised to reflect the energy efficiency benefits. The Duty on Buddy Trucks with cargo carrying capacity less than 2000 kg will be reduced under the Budget proposal.
“The 200% cash deposit on Letter of Credit (LC) had been removed by the Ministry but a ‘luxury tax’ would be calculated if the LC exceeds Rs.3.6 million,” he said.
There would be no need to calculate a luxury tax for vehicles when importing because that tax is already being collected when registering at Department of Motor Traffic (DMT),” he said.
“The overall tax proposal was a mess and no benefit to the people. The budget has let down the vehicle importers. If the Government had a discussion with the vehicle association before preparing the budget, this could have been profitable,” Mr. Pieris added.