INSUBCONTINENT EXCLUSIVE:
According to the association, taxes could climb to 400%, 500%, or even 600% for certain vehicles.The president of the association, Prasad
On top of that, an 18% VAT is applied
will increase significantly
For instance:Taxes on a Wagon R could rise from Rs
1.8 million.Taxes on a Vitz could jump from Rs
2 million to approximately Rs
2.4 million.Taxes on vehicles like the Toyota Aqua, Corolla, and Axio, previously Rs
6.6 million, could now exceed Rs
6.6 million.While the cost of importing vehicles will rise sharply, the association noted that the prices of vehicles already in the local
market are likely to see only a slight increase.Despite the rising taxes, the association urged the public not to panic
Manage encouraged potential buyers to wait until new vehicles arrive in Sri Lanka, as the supply situation may stabilize.Sri Lanka imposed
strict restrictions on vehicle imports in 2020 during the severe economic downturn
reserves, optimism about vehicle imports returned.In September 2024, the Cabinet approved the phased import of motor vehicles and wheeled
items under 304 Harmonized System (HS) Codes, effective from February 2025.However, a recent gazette notification issued by the President
introduced new excise duty amendments on vehicle imports
These adjustments increase excise duties on both fuel-powered and electric vehicles, depending on cylinder capacity and vehicle age.
