Sri Lanka cuts tax on smaller electric cars, Tesla EV prices to soar
May 28, 2016 12:06 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka has cut taxes on popular mid-sized electric cars from 2.7 million to about 1.7 million rupees and sharply raised levies on luxury larger brands such as Tesla, which are expected to go up steeply in price.
The price of the Nissan Leaf, Sri Lanka's most popular electric cars is expected to come down by about a million rupees.
However luxury Tesla models are expected to go up steeply under a sharply progressive tax system.
Under new tax rates announced this week, electric cars with a motor of less than 50kiloWatt will be charged 15,000 rupees per kW and those up to 100kW, 25,000 rupees.
Cars of between 100 and 200 kW will be charged 35,000 per kilowatt and those above 200 kW will be charged 45,000 rupees per kW.
A Tesla Model S with a motor of at least 270kW will now be charged taxes of 12.1 million rupees. The street value of the car is expected to top 20 million rupees, motor trade officials said.
Sri Lanka had an interventionist policy of charging very high rates of taxes from motor cycles, three-wheelers and small motor cars and charging low rates of taxes from electric cars.
Under the new rates announced this week, cars with hybrid and reciprocal engines are also taxed not simply on a non-discriminatory proportionate basis but under a sharply progressive system from this week, based on engine capacity.
In Sri Lanka the elected ruling cars pay no tax on their cars and state workers also get tax slashed cars while the ordinary citizens are squeezed with high taxes in the style of a neo-serfdom re-established after the end of British rule.
Under British rule both slavery and serfdom were abolished. (Colombo/May28/2016)