New car tax for cars under 1000cc, hybrid and electric vehicles are going to apply in Sri Lanka. The Government had decided to revise the current excise duty levied on vehicles engine capacity less than 1000cc had been revised from today on wards. So the the Import Duty on vehicles under1000cc had been increased up to Rs. 1.5 million and hybrid and electric vehicles less than 1000cc are up to Rs.1.25 million.
This will be a big blow for the Sri Lanka middle class people who were serving money for to buy a small car for their families. Mean while the people who already have small cars will be happy as their vehicle value will go up in the second hand market. On one hand the tax is increasing and on the other hand Sri Lanka Rupees value is going down against the American Dollar in the banking sector. This too will make the price increase along with the newly implemented new tax on small cars.
According to officials these tax amendments will not affect the letters of credit (LC) opened before August1, 2018 and these new taxes are not applicable for vehicles that were cleared before 31st January 2019.
New car tax.
According to Vehicle Importers Association of Sri Lanka (VIASL) Chairman Ranjan Peiris “the price of petrol vehicles with engine capacity less than 1000cc would be increased by Rs. 3,50,000, while electric and hybrid vehicles less than 1000cc engine capacity would be increased by Rs.4,15,000.
New car tax for Suzuki Hustler, Suzuki Wagon R, Suzuki SpaciaC vehicles prices will be increased. Petrol vehicles such as Suzuki Alto (Japan), Daihatsu Mira, Honda N-BOX, Honda N WGN (Wagon), Nissan Dayz and Toyota Pixis Epoch would too will be increased.
According to the Customs sources increased New car tax on petrol car: Alto 660cc and Petrol Wagon R (660cc) would be Rs.1500,000, which was at Rs.1,155,000 Wagon R Hybrid would be 12,50,000 which was at 825,000.