The prices of vehicles such as cars, sports utility vehicles (SUVs) and jeeps will increase between Rs.75,000 and Rs.1 million because of the imposition of the new luxury tax, Vehicle Importers Association of Sri Lanka (VIASL) President Ranjan Pieris said.
He said the new luxury tax came into effect from November 1 for all vehicles which exceeded the selling price of Rs.3.5 million and added that the price increase would affect vehicles such as Toyota CHR, Audi Q2 and Honda CR-V.
Mr. Pieris said the rising value of USD, GBP and the JPY was bound the increase import prices.
“Any further pressure on the USD will make imports even more expensive,” he said and added that the VIASL had decided not to request the new government for duty concessions.
As explained by several government officials foreign currency outflow resulting from the increase in the total import volume could be detrimental to the local economy.
However, Mr. Pieris said the vehicles remaining in the showrooms would be sold at previous prices because of the festive season. (Chaturanga Samarawickrama)