Govt. mini-budget: Huge increases in vehicle prices

Alcohol and cigarette prices also go up

The Government yesterday introduced a mini-budget, raising taxes on vehicle imports, cigarettes and alcohol. The move will have immediate implications with vehicle prices going up by amounts ranging from Rs. 300,000 to Rs. five million, hard-liquor by Rs. 60 a litre, imported beer by Rs. 50 a litre and local cigarettes by Rs. one.

The government said it was expecting to raise Rs. 3 billion from the tax on tobacco and liquor.
However the tax on vehicle imports was also aimed at curtailing the imports and improving on foreign reserves by preventing the outflow of foreign exchange.

“We have too many vehicles on the roads with an average of 3,000 vehicles being registered a day. This is a burden on the country. Our oil import bill too has increased,” Deputy Economic Development Minister Lakshman Yapa Abeywardena said.

Sharp increase in vehicle prices

“The tax will help reduce our fuel import bill and protect foreign reserves,” he said. The taxes on the import of vehicle spare parts and body-parts were also increased yesterday.

According to the revised rates, the tax on a petrol car below 1000 cc engine capacity has been increased by 80 per cent, cars between 1000 cc and 1600 cc by 71 per cent, cars between 1600 to 2000 cc by 64 per cent, more than 2000 cc by 96 per cent and more than 3000 cc by 86 per cent.

For diesel cars the taxes have been increased by amounts ranging from 59 per cent to 70 per cent and petrol vans from 13 to 28 per cent. The tax on a modified petrol vehicle has been increased by 111 per cent.

On three-wheelers the tax increase ranges from 23 to 49 per cent and on motor cycles 39 per cent.
Vehicle Importers Association President Sampath Merinnage said that in addition to the new taxes imposed, the prices would also further move up due to the dollar rate increasing.

He said the price of a Maruti 800 cc would increase by a minimum of Rs. 300,000, while the price of a new Hybrid would increase by Rs. 1 million. He said the price of a Toyota Allion would go up by Rs. 1.5 million and a Toyota Vitz by Rs. 1.2 million. The price of a van would increase by about Rs 400,000.
The price of a three-wheeler is likely to increase by Rs. 100,000 and a motorcycle by Rs. 50,000.

Meanwhile, the Central Bank on Friday said the foreign exchange inflows continued to remain healthy during the past few weeks. Reflecting this trend, the exchange rate appreciated to around Rs. 128 a US dollar on Friday from around Rs. 130 a week ago.

Restrictions on reconditioned vehicles

The import of reconditioned vehicles was restricted yesterday with the government saying it would only allow the import of such vehicles which were manufactured less than one year ago. Earlier reconditioned vehicles which were manufactured three and a half years ago were allowed to be imported.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other News Articles
Hambantota to be free port
Prices skyrocket ahead of Avurudhu
Switch off lights, close those taps
Govt. mini-budget: Huge increases in vehicle prices
Tax hikes come ahead of crucial IMF talks
No arrests yet on failed abduction of 11-year-old Visakha schoolgirl
CJ worried over conduct of some lawyers
Sirikotha attack: Guilty members face the axe
No-faith motion alleges political bias in public sector recruitments
FUTA to strike to ‘safeguard state universities’
Army bigwigs deny charges
‘Lost’ shrub frog turns up after 100 years
Ex-AG Mohan Peiris as witness: Court will decide on May 17
Malabe asks for second chance as govt. doctors call for its closure
Soldiers try to force Kugan’s wife to sign Sinhala document: MP
Take only a pinch of salt to avoid strokes, says top doctor
Basnayake Nilames galore
Media groups call for action against Mervyn
Marginal improvement at this year’s O/L exam results
Adopt farming methods that make best use of water
Sri Lanka and the United States: Post-Geneva repairs
Dissatisfied commuters of private bus service on the up
Villagers angry over armed cadres still at large
‘I survived because of my political contacts’
Hot days are here to stay, at least for a while longer
Boy’s body exhumed after four years
Forcing India out of the democratic closet
Signs of Washington's waning influence in Asia


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution