ECONOMYNEXT – Sri Lanka will charge a so-called luxury tax from high value cars and SUVs for which import letter of credit was opened after March 05, 2019 and the basis of engine capacity to charge taxes has been removed, the finance minister said.
The luxury tax will be applicable to petrol and diesel cars and jeeps valued (CIF) over 3.5 million rupees, hybrids over 4.0 million rupees and electric vehicles over 6.0 million rupees.
The tax will no longer be charged on the engine size for vehicles below the capacity of 1,800cc, for petrol, 2,300cc for diesel and a 200 kiloWatt motor will not apply from November 01.
But letters of credit opened up to October 31 and imports cleared before April 21, 2020 will still not be charged the luxury tax.
The finance ministry said cars like Toyota Vitz, Suzuki Every, Toyota Roomy, Suzuki Alto, Suzuki Baleno, Daihatsu Petrol, Honda Grace, Suzuki Wagon R, Toyota Aqua will not be subject to the luxury tax.
Sedans like Toyoa Axio, Premio and Allion will also not attract the luxury tax, the finance ministry said. (Colombo/Oct29/2019)