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Vehicle prices up after Budget

6 March 2019 09:27 pm - 16     - {{hitsCtrl.values.hits}}


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. (Chaturanga Samarawickrama)

  Comments - 16

  • Dee Wednesday, 06 March 2019 09:30 PM

    Feel sorry about the guys who were smacking their lips, waiting for car prices to come down. Very good. Now go invest in a proper house. Car can come later.

    P Ranil Thursday, 07 March 2019 07:45 AM

    You sounds like our minister John , any chance of you two went to the same school?

    Uwin Wednesday, 06 March 2019 09:53 PM

    The introduction of this hilarious Luxury Tax based on the CIF value will have a huge negative effect on the middle class. People won't be able to import a good quality vehicle even in a lower engine capacity. For eg: a Toyota Premio, Allion, 1000CC Honda Civic, 1500CC Honda CRV will also fall under the category of luxury, and will be applicable of nearly LKR 1 million of Luxury Tax. In my opinion government should go ahead with the revision of import taxes (as they did in the 2019 budget) and scrap of this new luxury tax and stick to the existing engine capacity based luxury tax system.

    Mohamed Fazil Thursday, 07 March 2019 01:16 AM

    Due to heavy custom duty , many lower earning family can only dream to buy a vehicle,,,,

    Nish Thursday, 07 March 2019 03:33 AM

    Who cares if vehicle prices are up. Is vehicles prices the single biggest problem in SL? Even if you buy a vehicle, where can you drive it? The roads are chocker-blocked already anyway. We don’t want any more vehicles on the roads. Try to give some decent services to poor struggling people. Get rid of perks for politicians. Get rid of corruption. Get the prorates right SL.

    nihal Thursday, 07 March 2019 05:44 AM

    No national policy even for taxes. Going up and down with hidden agendas of politicians. It is like weather. No investot will start a project in our country.

    Wimal Thursday, 07 March 2019 06:01 AM

    When donkeys are managing the country what can you expect other than rubish

    Adwani Thursday, 07 March 2019 07:02 AM

    Rata Kapalla.

    reality truth Thursday, 07 March 2019 09:04 AM

    I take both sides. The good is at the rate the vehicle being flocked in these roads our country is turning to become a tiny India and bad is..... what measures has the government taken to improve the public transportation systems !!!.

    Nimal Ranaweera Thursday, 07 March 2019 09:28 AM

    What alternative if not increase taxes and collect money to repay the huge Chinese debt created by MR regime for useless projects like Mattala Airport, Hambantota harbour, Covention centre, cricket ground etc. etc.

    pathy Thursday, 07 March 2019 10:01 AM

    Now understood the meaning of fishing rod instead of Fish- looks like even a fish is a impossible dream for common man

    Haris Thursday, 07 March 2019 10:58 AM

    Tax for 2000/2500 cc vehicles are not increased. Is it because mostly those vehicles are used by ministers and VIPs?

    Mushi Thursday, 07 March 2019 02:50 PM

    Now people can't afford to buy even hearses.

    arrow Thursday, 07 March 2019 05:19 PM

    this is nonsense. always the middle class is squashed. bunch of lunatics ruling the country.

    Ganeshamoorthy MGM Thursday, 07 March 2019 05:51 PM

    I am afford to buy only a "tractor" to my vehicle permit!

    George Harry Thursday, 07 March 2019 11:25 PM

    Not only messed up the Budget, but the entire country and its people.

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