The Vehicle Importers Association of Lanka (VIAL) today welcomed President Maithripala Sirisena’s decision to withdraw the 2016-budget proposal to increase the import tax on electric vehicles by 50 percent.

Thus the import tax on electric vehicles would remain at five percent.

During a cabinet meeting on Wednesday (23), the president had rejected the tax increase.

VIAL president Indika Sampath Merenchige said the decision to withdraw the proposal was advantageous to the vehicle import industry.

He said, however, that the prices of electric cars would increase slightly because of the revised valuation system. “Therefore an electric car would cost at least Rs. 2.8 million,” he said.

Co-Cabinet Spokesman Gayantha Karunathilake said the government had decided not increase in the import tax on electric cars because of numerous requests by various persons.

“As a responsible government which considers people's opinions, we decided to withdraw the proposal,” he said. (Darshana Sanjeewa)