Finance Minister Ravi Karunanayake assured that taxes imposed on vehicles by the 2016 budget will not be revised, Lanka Vehicle Importers' Association (LVIA) said today.

Chairman of the Association Indika Sampath Merenchige said the Association had discussed the matter with the Ministry yesterday.

Minister Karunanayake presenting the budget said that the unit rate of excise duty for the vehicles on the basis of cubic centimeters and duties on the percentage basis on certain vehicles would be revised.

The Association earlier said with the proposal would increase prices between Rs. 200,000 to Rs. 2.5 million.

“We wanted several changes but we did not want to challenge the government’s decision. We also discussed issues with regard to the new valuation system and the minister assured us that the system would not be revised,” he said.

He said the finance minister assured the tax imposed would be implemented as proposed for a 18 months period atleast as it granted the government a much needed income but would decreased thereafter.

“During the meeting, the minister said the decision to increase taxes was to ease the large amount of currency to foreign countries when importing vehicles,” he said.

Meanwhile, the Association said motorists could purchase vehicles that were imported before the decision was made at a slightly increased rate. “Vehicles brought into the country after the tax increase would be available next month. Vehicles that were imported earlier could be purchased at 10 to 15 percent price hike,” Mr. Merenchige said. (Darshana Sanjeewa)