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Sri Lanka Equity Forum » Stock Market News » Budget 2017 – Taxes raised on smaller cars & three wheelers

Budget 2017 – Taxes raised on smaller cars & three wheelers

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Park Road

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The Finance ministry has revised the tax rates on vehicles making smaller cars and three wheelers more expensive while lowering the price of electric cars which are already heavily subsidised.
Finance minister Ravi Karunanayake reduced the tax on electric cars (less than 99 kilo watt) to a tax rate of 40 per cent, down from 50 per cent of CIF (cost, insurance and freight) earlier.
However, the unit rate of gasoline-powered cars with an engine capacity of less than 1,000 cc was increased from LKR 1,500 for every cubic centimetre to LKR 1,750, an increase of LKR 250 for every CC.
Dealer said low-end Indian-made cars could go up by as much as LKR 200,000. However, car dealers had lowered their retail prices by up to LKR 200,000 just before the budget anticipating a tariff reduction.
This means the price of smaller cars will remain the same, but the state will mop up the reduction in the retail price announced by dealers last week.
- See more at: https://autodirect.lk/budget-2017-taxes-raised-smaller-cars-three-wheelers/

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