Nov 15, 2012 (LBO) – Prices of small cars may go up by 200,000 and trucks by about 400,000, and three wheelers by about 25,000 following tax changes announced in the budget, industry officials said. The prices of larger cars will remain stable as they already pay over 750,000 in taxes, under the rules announced in the tax change, Gunasekera said.
The price of a three wheeler may go up by about 25,000 rupees.
Update II The price of a truck may go up by about 400,000 depending on the weight head of Ceylon Motor Traders’ Association Tilak Gunasekera said. Trucks range from 5 to 20 tonnes.
Trucks had a 7 percent port and airport levy and nation building tax. The budget had imposed a 15 percent excise duty raising taxes to 22 percent. Compared to trucks however, cars are taxed at a much higher rate.
The price of a small car may go up by 200,000 rupees, he said.
Some of the cheapest small cars in the market include an Indian made Maruti and the Tata Nano.
Reginald Heyzer sales Manager of Associated Motorways said the price of an 800cc engine Maruti may go up by over 100,000 rupees and an Alto model by about 75,500 rupees.