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A new valuation system was introduced recently taking full option manufactures price as the tax base, due to the reports on revenue leakages from the under valuation of motor vehicles for tax purposes. “To further strengthen this process of collecting the duly payable taxes, I propose to introduce a simple unit rate of excise duty for the vehicles on the basis of cubic centimeters,” Karunanayake said.
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“Duties on the percentage basis on certain vehicles will also be revised.
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” He said. Meanwhile, 2016 budget has reduced excise duty to 2.5 percent for the vehicles which are run entirely on Solar, Hydrogen or Helium. Ravi Karunanayake said some of the vehicles which are being assembled in the country have not been registered with the Department of Motor Traffic Department due to various reasons. He urged the owners of unregistered vehicles to register their vehicles by 31 March 2016, by paying a fee of 750,000 rupees for commercial vehicles and 1 million rupees for motor cars. Finance minister is also to introduce a new emission fee for motor vehicles which generate 18 billion rupees for the government. A fee charged on the certificate of emission test will be enhanced to 5,000 rupees per vehicle. Read More: Sri Lanka vehicle prices to increase with new customs valuation basis