Jan 30, 2015 (LBO) – Sri Lanka revised the vehicle taxes and cut taxes on the motor cars with engine capacity less than 1,000 cc by 15 percent, Finance Minister said yesterday presenting the mini budget. The changes has been taken place with effect from mid night yesterday. The Minister said that the measure has been taken in order to encourage low income families to purchase a motor car to improve their living standards.
Sri Lanka imports small cars mainly from India.
The mini budget 2015 also cleared the anomalies relating to tax procedures on hybrid cars resulting the cost to go up.
The present tax structure on motor vehicles has created an unhealthy disparity between hybrid and normal motor cars, Ravi Karunanayake, Finance Minister of Sri Lanka said.
In order to rectify this anomaly, I propose to revise the excise taxes applicable on hybrid vehicles.
Also the government removed the depreciation table with effect from mid night yesterday.
The present practice of depreciating the value of vehicles at the point of import has created many mal-practices, including under valuation of vehicles and changing the date of registration, Karunanayake said.