Sri Lanka vehicle prices soar with the 2016 budget
In the wake of the government’s taxes on vehicle imports proposed in the budget, the prices of vehicles are expected to rise at least by Rs. 500,000 to Rs. 2.5 million, motor traders disclaimed.
When looking at the budget proposal, it seems everything is all right, but new taxation, the valuation system and the depreciation on currency will jack up the price of vehicles at very high levels, Chairman of the Sri Lanka Vehicle Importers’ Association Indika Sampath Merinchige said.
He said that the tax on hybrid vehicles has been increased to 10 per cent and electric cars to 50 per cent from 5 per cent. This will result in the increase of electric cars by Rs.2 million, he added. Motor traders will have to pay an additional fee of Rs.15,000 for each unit when opening Letters of Credit to import vehicles, he added.
Prices of small cars including Maruti will also go up due to the introduction of a vehicle import fee to obtain a Vehicle Entitlement Certificate for each vehicle.