Sri Lanka increases taxes for cars over 1000cc

Vehicles

May 27, 2016 (LBO) – Prices of vehicles above 1000 cubic centimeter engine capacity will increase following the increase of the minimum unit tax from today, the Vehicle Importers Association said.

“Prices may go up by about 100,000 to 150,000 rupees while larger cars and Sports Utility range will see a steeper rise,” the association said.

The Association also said that taxes for smaller vehicles will come down.

“Taxes on small cars may fall as much as 200,000 rupees after today’s changes.”

Expenditure on motor vehicle imports to Sri Lanka has recorded a 60 percent growth last year compared to previous year, a recently released Ceylon Chamber vehicle market report showed.

Import of passenger vehicles recorded the highest growth in vehicle imports, it said growing by 88 percent year-on-year, mainly driven by imports of motor cars.