Vehicle prices hike further

Colombo, May 6 (Daily Mirror) - The implementation of a 2.5% increase in the Social Security Contribution Levy (SSCL) has triggered a sharp rise in Sri Lanka’s vehicle import sector, with importers warning that prices of all imported vehicles have increased from May 1, adding fresh pressure on already strained consumers.

The Vehicle Importers’ Association of Sri Lanka (VIASL) says the revised levy has also been applied to vehicles manufactured in previous years, significantly pushing up costs at a time when market demand remains weak.

VIASL Secretary Usman Ali told the Daily Mirror that the revised tax structure was introduced following a request by the association, aimed at standardising taxation procedures between individual and registered importers. However, the move has now become a point of contention among buyers and industry stakeholders.

He said that earlier, individual importers were able to bring in vehicles without paying SSCL charges. “From May 1 onwards, the SSCL is charged at the Customs release point from all importers,” he explained.

Ali said the levy has increased from 1.25% to 2.5%, directly impacting retail prices. “Earlier importers paid 1.25% as SSCL, but now all importers must pay 2.5%. This results in an increase in vehicle prices,” he said.

Adding to the complexity, he pointed out that fluctuating vehicle prices on Japanese manufacturer websites—driven in part by geopolitical tensions in the Middle East—are already affecting import valuations. He also warned that vehicles manufactured in 2024 or 2025 could now be assessed at higher Customs values, particularly if benchmarked against new vehicle prices.

“Earlier, we calculated vehicle prices at the time pre-orders were made. But now, after importation, the new 2.5% SSCL is charged, which has become a serious issue for customers as they have to pay additional charges to release their vehicles,” Ali said.

The price revisions are expected to hit a wide range of popular models. A Honda Vezel Z Play and RS could see increases of around Rs. 345,000 and Rs. 350,000 respectively, while Toyota Corolla Cross Hybrid GR and Hybrid Z variants may rise by Rs. 510,000 and Rs. 478,000.

Smaller vehicles are also affected, with the Daihatsu Mira G grade expected to increase by Rs. 130,000 and the Nissan Dayz HSG Turbo Urban Chrome ProPilot by about Rs. 165,000.

Other projected increases include the Toyota Raize (Rs. 202,000), Daihatsu Rocky Premium G (Rs. 203,000), Toyota Roomy Custom GT (Rs. 215,000), Suzuki Wagon R Hybrid (Rs. 153,000), Toyota Yaris (Rs. 168,000), Toyota Taisor V (Rs. 168,000), Suzuki Fronx Zeta (Rs. 164,000) and Kia Sonet X Line (Rs. 187,000).

Higher-end models such as the Toyota Land Cruiser 250 (Prado) and Land Cruiser 300 (LC300) are also expected to increase by Rs. 980,000 and Rs. 1,450,000 respectively. The Land Rover Defender is set to increase by Rs. 880,000.

Importers warn that the combined effect of the tax hike and valuation changes could further weaken demand in the vehicle market, while placing additional strain on consumers already grappling with a high cost of living.