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Lower duty, interest subsidy for Sri Lanka electric cars: Budget 2017

ECONOMYNEXT – Sri Lanka’s government will encourage use of electric cars by reducing excise duty and giving an interest rate subsidy on loans to buy the vehicles, Finance Minister Ravi Karunanayake told parliament.

Delivering the 2017 government budget speech, he said a Carbon Tax will be imposed on vehicles other than electric cars and tractors with the fee to include the existing emission test fee.

Karunanayake proposed to reduce Excise Duty on electric cars with motor power less than 100 KW, saying the government is committed to encourage green energy consumption.

Karunanayake said the government wants to replace three-wheeled auto-rickshaws, which cause most accidents, with electric cars and give 50% interest subsidy on a loan scheme for promoting electric cars as taxis.

“We have nearly 1.3 million three wheelers operating on our roads today and they are the most vulnerable to accidents,” he said.

“To improve safety of the drivers as well as passengers, I encourage the replacement of three wheelers with electric cars.

“As an initial step, the government will within the Colombo district, extend its support by introducing a loan scheme to purchase 1,000 such electric cars, through the banks, where the government will bear 50 percent of the interest cost for which I propose to allocate Rs200 million.”
(COLOMBO, Nov 10, 2016)

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