2016 Budget to impact vehicle prices

Sri Lanka’s vehicle importers association says that the introduction of a unit rate for vehicles which will be the minimum value and the tax increase through the 2016 Budget proposal will likely increase the prices of vehicles.

President of the Vehicle Importers Association of Lanka (VIAL), Sampath Merenchige, said that the import tax on 1000cc hybrid vehicles has been increased from 50% to 70% and that this would result in the prices of popular vehicles such as ‘Wagon R’ and ‘Aqua’ increase by around Rs 400,000.

He stated that the tax on electric vehicles has been increased from 5% to 50% and that therefore duty will increase by around 25-30 lakhs. 

The tax on vans has been significant increased from 85% to 150%  likely resulting in a price increase of 25-30 lakhs. 

“We intend to hold a discussion with the Finance Minister regarding this matter, as an association, in order to resolve such shortcoming,” Merenchige told Ada Derana. 

He also said that a license is to be issued for importing vehicles which will see an amount of Rs 15,000 charged for cars, Rs 10,000 vans and lorries and Rs 2,000 for motorcycles.