Vehicle prices increased again

27 May 2016 11:13 am - 16     - {{hitsCtrl.values.hits}}

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Prices of motor vehicles with a cylinder capacity between 1000 cc and 1500 cc and three-wheelers have risen as a result of the increase in the Unit Rate Tax from midnight yesterday, the Vehicle Importers Association of Sri Lanka (VIASL) said today.

However, the prices of some of the smaller vehicles with an engine capacity of less than 1500 CC such as Toyota Vitz, Passo, Honda Shuttle (Hybrid), Freed, Vezel, Insight, Suzuki Hustler and Wagon R (hybrid) decreased.

The VIASL President Indika Sampath Merenchige said the Unit Rate Tax has increased from Rs.2.6 million to Rs.3 million resulting in the price of a Toyota Prius increasing from Rs.3.3 million to Rs.7.7 million and would likely discourage people from importing Japanese vehicles in the future.

“This is the highest tax increase on vehicles in recent history. The excise duty which was maintained at a lower level during the past three weeks has also been increased,” Mr. Merenchige said.

The prices of electric vehicles will be increased according to its battery capacity while the Customs duty on electric vehicles with battery capacity of 100KW has been reduced.  

As such the Customs duty of Rs.2.9 million on a Nissan Leaf electric vehicle would be reduced to Rs.1.7 million.

Tax on vehicles such as lorries, buses and vans have not been increased.

“If this practice continues, only vehicles below 1000cc engine capacity will be imported to the country in the future.  The imports of motor vehicles with cylinder capacity between 1000cc and 1500cc would be reduced by 85 per cent,” Mr. Merenchige said.

Meanwhile, Chairman of Lanka Vehicle Importers' Association Mahinda Sarathchandra said prices of vehicles with cylinder capacity exceeding 1599cc (1600cc) would be increased because of the newly introduced Transected Value or Unit Rate Tax according to the Extraordinary Gazette Notification issued yesterday.

He said the tax on a Nissan X-trail which is currently taxed at Rs.4 million would increase to Rs. 8 million, a two-fold increase in the price.

A Mazda Axela now costing Rs.3.8million would rise to Rs.8 million. Petrol Prado 150 was increased by Rs.5 million, a Land Cruiser 202 was increased by Rs.10 million.

“This price increase is an unusual increase by the government and it is unfair to have such vehicle price increases again in a situation where vehicle prices increased repeatedly in a short time, Mr. Sarathchandra said. (Chaturanga Pradeep)

 

Video by Richan

 

  Comments - 16

  • Gusto Friday, 27 May 2016 11:35 AM

    Good move. This will increase the demand for Indian made vehicles which are more suitable for Sri Lanka. via DM Android App

    Premalal Friday, 27 May 2016 11:45 AM

    Duty free for free loaders and hike for the productive sector.

    Harry Friday, 27 May 2016 12:48 PM

    Bull shit! do you need more Indian Garbage! SL is not their dump yard!

    karu Friday, 27 May 2016 12:51 PM

    Bankrupt Government with bankrupt ideas.

    Dee Friday, 27 May 2016 12:59 PM

    The poor suffering masses will suffer because of this move.

    kums Sunday, 29 May 2016 12:11 AM

    is it true via DM Android App

    dham Friday, 27 May 2016 01:49 PM

    Vehicle is essential item should not be income generating tool adopt another mechanism to control vehicles dump into SL via DM Android App

    mnsmart Friday, 27 May 2016 02:15 PM

    "bahut badhiya"

    Yannika Friday, 27 May 2016 02:38 PM

    This will drive up the prices of permits and the bench warming public sector officials should be happy.

    aja Friday, 27 May 2016 02:51 PM

    are Indian or an idiot

    Nanda Friday, 27 May 2016 04:23 PM

    ECTA coming from back door.

    Afkar Friday, 27 May 2016 06:14 PM

    SL Government Should Restrict the Import quota per year. Which means limit the importation numbers to minimum..Even though the Government Increase the duty more that wouldn't have a grater impact on the importation number and That will have grater impact on the Indian Vehicle Market...Indian Products are lower in standards compared to Others...

    The Diplomat Saturday, 28 May 2016 01:51 PM

    Nissan Leaf goes down by 1.2 million!

    jk Friday, 27 May 2016 06:19 PM

    People must think about the air pollution because of those vehicles. Also recently power outages led to import many diesel generator into the country. It would also make huge contribution to increase air pollution of our island. Please refer below link which is one of generator importer and their massive generators to be import to sri lanka .http://circom.lk/generator-sales/

    Dutugamunu1 Friday, 27 May 2016 07:41 PM

    i still have no answer why this finance minister impose higher tax on hybrid and electric vehicles ..He can do it to petrol vehicles but should reduce electric and hybrids.

    Alf Friday, 27 May 2016 07:46 PM

    Hyundai, Suzuki, BMW, Volkswagen, Audi, Mercedes Benz, Ford, Fiat, Honda, Chevrolet(of General Motors), Toyota, Lamborghini, Jaguar, are the foreign automotive companies that manufacture and market their products in India. Not in China


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