Tsunami of 1000cc vehicle imports after new tax formula: Mangala

3 August 2018 12:27 am - 11 - {{hitsCtrl.values.hits}}

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After introducing of a new formula to calculate the import taxes on vehicles based on their engine capacity, importing of motor vehicles less than 1000cc was becoming a Tsunami to the country, Finance Minister Mangala Samaraweera said.

The new tax structure on vehicles was introduced under the Budget-2018 proposed by Minister Mangala Samaraweera has been revealed by the Finance Ministry. The calculation of Excise Duty on vehicles on the basis of Cost, Insurance and Freight (CIF) value was removed.

“According to received records, 45000 vehicles with 1000cc engine capacity were imported from January to May. Each month about 4500 vehicles have been imported. At least one thousand 1000cc vans have been imported each month,” the Minister said.

Speaking to the media at a press briefing at the Finance Ministry yesterday he said, with the new tax structure, it would be a huge relief for the people and after amending the structure, loss to the government have increased.

Due to a large number of vehicles imported to the country, it might have made a big impact to the depreciation of the SL rupee against the US dollar leaves valuable foreign exchange under pressure, Minister Samaraweera said.

Following the request of the Central Bank, the decision was taken after holding several rounds of discussions.

During the Rajapaksa regime in 2014, 150% tax was imposed on motor vehicles with engine capacity less than 1000cc.

“People had paid Rs. 1.65 million for a Wagon R during the former regime but with the new tax amendments, people have to pay only Rs.1.25million which is far lesser than 2014 taxation,” he said. (Chaturanga Samarawickrama)

Video by RM

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Comments - 11

Sathees Friday, 03 August 2018 06:39 AM

Best place to save foreign exchange is to stop vehicle imports for the MP's. Less than 1000 cc is a common mans transport. Touch it, you will loose the next election!

Sunil Friday, 03 August 2018 06:57 AM

These are all lame excuses. The use of small vehicles that are fuel efficient should be encouraged not discouraged by increasing taxes. These cars were a boon to the middle class folk in rural areas. This is a sordid regime that is hell bent on improving their own lot at the expense of the masses. The only remedy that people can take, they will take at the next elections.

Ajja93 Friday, 03 August 2018 07:06 AM

Please make EV cars duty free. Other countries governments give rebate to buy EV cars

Noraccholai Friday, 03 August 2018 03:57 PM

and where my good sir do you think the electricity for these EV's come from?

Arnold Friday, 03 August 2018 07:07 AM

All politicians in SL are foolish. People elect governments to make peoples life easier and better. But it looks these fools think they are there to squeeze out as much taxes as possible and enjoy their lives to the maximum. Dear Politicians, please lower the cost of cars or start building that light railway system. We just need to live. We do not enjoy driving cars (that costs almost it weight in gold) BUT we have no other alternative!!

Hafeel Friday, 03 August 2018 07:18 AM

Don't talk about the former regime, you all ruined the nation to the core.

Rohan Friday, 03 August 2018 05:30 PM

Not only importing cars impact on depreciating Rupee but also importing all luxury items by mega rich business empires like Singer, Arpico and so many other business magnates. So what action Finance Ministry has taken to control that?

upul Friday, 03 August 2018 06:43 PM

Seriously?The idiots who advised making the changes to the duty structure did not imagine that people will figure out the loop-holes? Still, if I can afford the cost of the vehicle and the declared cost is legitimate, there should be no issue.As many have already said previously, the duty-free permits to the crooks running the country, in Parliament and outside, the doctors, engineers and directors are the losses to revenue the government must avoid.Let them pay the duty the rest of us have to pay.If they don't like it, tell them to get lost! Let's see if the UK or Australia will give them the cushy life they enjoy here

Nadaal Saturday, 04 August 2018 01:05 PM

This minister must be suffering from amnesia. We were able to buy a Honda Fit or Toyota aqua for less than 4.5 million during Rajapakse regime.

RAK Saturday, 04 August 2018 10:00 PM

Very fishy, car sales stocks of below 1000cc gets cleared fast and may be a cut to the...ah who knows this is Sri Lanka

TONY Saturday, 04 August 2018 11:30 PM

THERE IS A VERY DANGEROUS TSUNAMI CIRCULATING OUR COUNTRY. THAT IS THE RAJAPAKSHAS HEADED BY TSUNAMI EXPERT MR

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Tsunami of 1000cc vehicle imports after new tax formula: Mangala

Comments - 11

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