The vehicle Importers’ Association of Sri Lanka (VIAL) highlighted the taxes imposed by government on motor vehicles and said apart from few differences, the 2018 Budget has generally paved the way for all interested parties to purchase motor vehicles, especially vehicles with less than 1000cc engine capacity.
While hailing the Budget proposals on motor vehicles, President Indika Sampath Merenchige, at a post-Budget media briefing requested authorities to provide necessary assistance to people who are interested in purchasing used vehicles imported from Japan.
He also said it was commendable that the government extended an assurance that the taxes already imposed on motor vehicles will not be changed under any circumstances, especially for a period of three years.
“Such a situation immensely benefits all stakeholders involved in the motor vehicle business industry including leasing companies and banks that are providing vehicle loans and also members of the general public who are interested in purchasing vehicles.
During the media briefing, it was revealed that the taxes of Sri Lanka’s most popular vehicles such as Aqua, Axio and Honda Vezel will be increased by Rs. 750,000.
Meanwhile, due to new Budget proposals 1300cc - 1500cc vehicles will go up by Rs. 730,800, Toyota Premio by Rs. 118,600, Prado by 51, 20,000 and Land Cruiser by Rs 2.9 million.
According to Budget proposals, the prices of certain motor vehicle such as 990cc, 1290cc and the Toyota Passo will be reduced to a certain extent.
In addition, the VIAL is also of the view that the taxes of many other varieties of vehicles will go up so as to make them too expensive for vehicle buyers in the future. He said as the Nissan Leaf has become very popular in the country and the authorities should focus more attention towards importing such motor vehicles in the coming years.
Merenchige also focussed attention towards imposing Rs. 5 to Rs 20 vehicle registration tax on certain vehicles and said authorities should reconsider reducing such taxes considering the people’s economic situations.
The Budget proposal to ban the import of vehicles that do not have airbags, anti-locking breaking system (ABS) and three-point seat belts is a move in the right direction, said VIAL Secretary Keerthi Gunawardana.
However, he scoffed at the argument that the Budget proposal will see the reduction of prices of brand new electric cars.
Gunawardana said Japanese manufacturers do not permit the export of brand new electric vehicles to agents in Sri Lanka due to the non-availability of infrastructure mechanism to maintain electric vehicles in Sri Lanka yet.
He questioned as to how, under such a scenario, the prices of electric vehicles could be reduced as envisaged in the Budget.
VIAL also hailed the measures taken to improve the quality of vehicles imported to the country such as putting mandatory requirements on airbags, the anti-locking breaking system and imposing Euro 4 (European emission standards) or equal standards on vehicles imported to the country.
However, the VIAL said that there would not be any significant benefits for customers from the tax reductions proposed in the Budget. There would not be much in terms of price reductions as had been expected by the people prior to the Budget,” he added.
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