Sri Lanka raises annual ‘luxury taxes’ on cars

Nov 21, 2011 (LBO) – Sri Lanka has raised annual taxes on ‘luxury’ cars between 20,000 to 50,000 rupees a year with new vehicles with engine capacity over two litres, being charged the highest rates of 150,000 rupees. Sri Lanka’s budget or 2012 said ‘luxury’ diesel cars over 2.5 litres of engine capacity and petrol cars over 2.0 litres will be charged a 150,000 fee in the first year up from 100,000, and 100,000 in the second year up from 78,000 rupees.

For semi luxury diesel cars and jeeps with engines of 2.2 litres and petrol cars over 1.8 litres 2.2 the first year fee tax has been raised to 60,000 rupees from 50,000 in the second year to 50,000 from 39,375 rupees and in the third year to 40,000 rupees from 34,000.

For dual purpose diesel cabs over 2.2 litre engines the rate has been raised to 40,000 from 20,000 in the first year and from 15,750 to 25,000 in the second year and from 13,600 to 20,000 in the third year.

Fees for new registrations of motorcycles has been raised to 2,000 rupees from 1,500 and for three wheelers to 2,500 from 2,000 and three wheeler vans to 3,000 from 2,500 rupees.

For motor cars with engines below 1.6 litres the free has been raised to 15,000 rupees from 10,000 and for