Increased tax revoked ... electric cars at same old price

Increased tax revoked ... electric cars at same old price

President decides at Cabinet meeting

What was focused at discussions among most people at the recent budget was the tax of fifty

percent imposed on the local motor vehicle driven with the aid of electricity. In this connection the price of a motor car such as the Nissan Leaf went up almost double the price and it thus skyrocketed by an abnormal price of about 25 lakhs.

However, the President Maithripala Sirisena yesterday took steps to bring down the proposal presented at the budget of levying an increase from 5% to 50% tax charged on motor cars driven by electricity. He had arrived at this decision at the Cabinet meeting held yesterday (23). Minister of Finance Mr. Ravi Karunanayaka did not attend this Cabinet meeting. The President said that though he was the Minister of Environment, he was not aware of this decision forwarded at the budget. What he then said was that the whole world is engaged in discussions about environmental pollution and at a time when action is being taken in a practical way in that connection, it was not a feasible idea to increase taxes in connection with motor vehicles driven by electricity. It was pointed out by Ministers Malik Samarawickrema and Sagala Ratnayaka and a number of other Ministers by bringing forward this idea, enforcing a tax of this nature was unjustified and was not practical either.

What President Maithripala Sirisena finally expressed was to withhold that new tax and to leave the tax of 5% as before. As such, doubts and anxieties of electric vehicles going up in price in future would thus be dispelled.