Sharp rise in Sri Lanka car taxes, ‘buddy’ vans down in budget2019
Mar 05, 2019 17:20 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Taxes on cars have been increased across the board with the popular Wagon R models costing an additional 250,000 rupees while electric cars and buddy vans have been substantially reduced, in Tuesday’s budget.
Finance Minister Mangala Samaraweera said the increase in the price of small car tax was “marginal,” but it worked out to a 20 percent jump.
The tax rate applicable to electric cars was brought down from 12,500 rupees a kilowatt to 10,000 rupees. However, hardly any electric cars are now imported into the country as the Nissan Leaf electric car failed to energise the motorists.
According to the budget proposals unveiled in parliament Tuesday, the taxes on “buddy” trucks with a cargo capacity of less than 2,000 kilos was brought down, but it was not clear by how much. Trucks are also due to be taxed at an unspecified lower rate.
The minister said he was also “revising” the tax on funeral cars, but again, the exact amount was not specified.
On the flip side, the credit restrictions on the import of cars was reduced. (COLOMBO, March 5, 2019-SB)