Sri Lanka’s super and semi luxury vehicle registration fee records revenue of over Rs. 1 billion
Sri Lanka’s super and semi luxury vehicle registration fee is annually bringing revenue of over Rs. 1 billion into state coffers, a top official said.
The income from the registration of these vehicles has recorded a new high of Rs. 1.25 billion last year while in the first nine months of this year the revenue from super luxury and semi luxury vehicles has exceeded Rs. 886 million, Commissioner General of Motor Traffic S. H. Harischandra told Business Times.
According to Sri Lanka Department of Motor Traffic statistics, on average over 50 super and semi luxury vehicles are registered monthly with the department earning well over Rs. 10 million in registration fees.
BMWs, Jaguars and Land Cruisers were among the luxury vehicles being frequently registered with the department, he revealed.
The Motor Traffic Department has collected a revenue of over Rs. 6.57 billion in 2012 from registering the vehicles imported under tax relief and other benefits while the revenue from the same registration in the first half of this year was Rs. 2.44 billion.
Despite levying high import taxes on vehicles, the super luxury vehicle market in Sri Lanka is growing due to an emerging class of rich buyers and vehicles imported through duty free and duty slashed permits.
Owners of luxury, semi-luxury and semi-luxury dual purpose vehicles will have to pay all taxes payable to the Department of Motor Traffic or respective insurance companies before the expiry of 60 days from the anniversary date of the vehicle registration or end of the tax year or whichever comes first, Mr. Harischandra revealed.
Taxes are ranging from Rs.6,000 to Rs.150,000 according to the engine capacity
These payments could be collected by the respective insurance companies on behalf of the Motor Traffic Commissioner General, he added.
A fine of 50 per cent of the vehicle registration tax will be imposed on owners if the taxes are not paid in the manner prescribed by the department, he said.
Vehicle owners will now have to make the tax payment according to the new regulation and not when they renew their motor insurance policy, he said.
Line ministries and departments, ministries of Provincial Councils and departments, United Nations and all its agencies, all diplomatic missions and gazetted international organisations are exempt from these taxes.
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