Motor traders, car buyers go electric
View(s):In an unexpected move, the Finance Ministry has revised the tax rates on vehicles going against the pledge given by Minister Ravi Karunanayake (last month) to maintain the current duty rates for at least two years.
Duty changes announced in the 2017 budget have made small cars and three wheelers more expensive while lowering the price of electric cars which are already getting concessions, motor traders said. This move will motivate car buyers to shift to electric cars, they added.
The price of vehicles with an engine capacity below 1000cc will be increased by around Rs. 200,000 while vehicles with engine capacity 1800 cc to 2000cc by around Rs.900,000, President of Vehicle Importers Association of Lanka, Indika Sampath Merinchige told the Business Times.
Duty on electric cars has been reduced by 11.5 per cent while three wheel duty has increased by Rs.250 per cc and thereby the price of a three wheeler will go up by Rs. 50,000.
There were no duty changes for hybrid vehicles up to 1800 cc.
Taxes on vehicles with engine capacity of 1800 cc to 2000 cc are to be increased at the rate of Rs.500 per cc. Accordingly BMW X5 duty will be up by Rs.900,000, Nissan X-Trail by Rs. 995,000 and Mitsubishi Outlander by Rs. 995,000.
Taxes on vehicles with engine capacity up to 1000 cc are to be increased at the rate of Rs. 250 per cc.
The taxes on 800cc vehicles will be up by Rs.200,000 and double cabs by 143.8 per cent or Rs. 5 million per unit.
For electric cars duty is to be reduced by 11.5 per cent to Rs.500,000 from Rs. 650,000.
Duty on petrol buddy trucks, is to be increased to Rs. 450,000 from Rs.300,000 and for passenger vehicles to Rs.600,000 from Rs.300,000.
Taxes on diesel van are to be reduced to Rs. 900,000 from Rs.1.45 million and petrol vans to Rs. 600,000 from Rs. 900,000. Taxes on trucks will also be reduced under the budget proposal.