Vehicle taxes may rise up to 600 percent in some cases, by 400 - 500 percent in others: Importers

Colombo, January 13 (Daily Mirror) - The taxes on vehicles may increase by up to 600 in some cases and some vehicles being subject to taxes as high as 400% or 500%, the Vehicle Importers Association of Sri Lanka (VIASL) said.

Addressing the media, the VIASL President explained that although the government issued a gazette notification, it only mentioned the excise duty percentages imposed on vehicle imports.

The final cost of a vehicle is determined after calculating multiple layers of taxation, including the special import tax based on the vehicle’s value, luxury tax, customs tax, Cost, Insurance, and Freight (CIF), and the existing 18% VAT.

Therefore, the VIASL President urged the public not to panic, clarifying that the taxes mentioned in the recent gazette notification do not represent the final vehicle tax imposed by the government. He also adviced against making advance payments or vehicle reservations before the commencement of vehicle imports.

Several petrol non-hybrid vehicle categories were listed, including models from Suzuki, Toyota, Honda, Nissan, Mitsubishi, and Mazda. Under Suzuki, the Every is priced at Rs. 1.3 million, while the Spacia and Alto each cost Rs. 1.9 million. Toyota's lineup includes the Taize and Yaris at Rs. 2.4 million, the Corolla at Rs. 6.6 million, and the CHR at Rs. 4.6 million. Honda offers the N-BOX, N-ONE, and N-WGN, each priced at Rs. 1.9 million. Nissan features the Dayz at Rs. 1.9 million and the Clipper NV100 at Rs. 1.3 million. Mitsubishi lists the Minicab at Rs. 1.3 million, and Mazda offers the Scrum at the same price.

For petrol hybrid vehicles, Suzuki offers the Wagon R, Spacia, and Hustler at Rs. 1.8 million each, and the Swift at Rs. 3.2 million. Toyota’s hybrid models include the Raize at Rs. 3.2 million, the Axio and Aqua at Rs. 5.1 million each, and the Yaris (Cross), Corolla Fielder, and Corolla (Cross), all at Rs. 5.1 million. The Corolla and Prius are priced at Rs. 11.3 million each. Honda features the Fit at Rs. 3.5 million, the Vezel at Rs. 5.1 million, and the N-BOX, N-WGN, N-ONE, and Shuttle at Rs. 1.8 million each. Mazda’s hybrid options include the Carol and Flair, both priced at Rs. 1.8 million.

Following the resumption of vehicle imports after a five-year suspension, a gazette notification was issued to impose excise duty percentages, effective from January 11, by the President in his capacity as the Minister of Finance and Economic Development.

Accordingly, excise duties of 200 percent and 300 percent have been imposed on vehicles not more than 10 years old from their date of manufacture. Certain categories of vehicles are subject to excise duties based on their engine cylinder capacities, motor power measured in kilowatts, and year of manufacture.