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Mr. Sampath Merenchige, Chairman of Sri Lanka Importers Association has said that as a result of the simple tax introduced for motor vehicles through the 2015 Budget, there would be a drop in the prices of motor vehicles below an engine capacity of 1000.
As a consequence there is a possibility that though prices of Hybrid motor vehicles and Japanese motor vehicles too could drop slightly, and he said that it would not be a noticeable drop as such. This is how he expressed his ideas about it: "There was a big demand for vans. It was not possible to import vans to meet the demand. Taking that factor into consideration, the government had reduced about one-third of the taxes. There is a special opportunity for vans to be imported in the future.
Vehicle importers had made a request from the government to employ a simple tax scheme in the case of imports. Fulfilling it from this Budget is a victory. The government tax revenue will increase with the number of people evading payment of taxes diminishing because of the consideration given on taxes".
Given below are the ideas expressed by Mr. S.R. Attygala, Deputy Secretary of the Ministry of Finance: "Because of the new Budget amendment brought into force through the 2015 Budget for import of motor vehicles and vans, customs duties levied on motor vehicles would be reduced by about 20 - 25 per cent while 25 - 65 per cent will be reduced in the case of vans. As this Budget proposal will be in operation on that day from midnight onwards, prices of motor vehicles will definitely be reduced without delay. All taxes prevalent for imports of motor vehicles and vans have been added together and a special tax scheme has been introduced by the Budget this time. As such, prices of these vehicles will without doubt, come down".
According to this new tax amendment, the 202 percent tax that is in operation when importing motor vehicles for vehicles with an engine capacity of less than 1000 has been reduced to 173 per cent.
When considering vans, taxes for vans used for transporting goods which was 175 per cent has been brought down too 100 while import tax of 126 per cent for 13 -20 seater vans will be reduced to 100 per cent from 126 per cent.
Information -- adaderanabiz.lk