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Apr 30, 2020

Luxury tax even on vehicles below 1000cc Featured

The Sri Lanka Vehicle Importers' Association (VIASL) says that vehicles with less than 1000 cc of engine capacity will be subjected to luxury tax as the value of the Japanese yen and the US dollar increased sharply against the Sri Lankan rupee after March 20.

"It is unfortunate that middle class people have to face such a situation. Therefore, they will have to pay 15% more," the association's president Mr. Ranjan Peiris told the media.

Although vehicles purchased by the middle class were exempted from the luxury tax, it will be automatically imposed following the depreciation of the rupee, he added.

Noting that they have been forced to close down their sales centres for two months due to the Covid-19 epidemic, Mr. Peiris said that although they have requested from the government to grant them some relief from their bank loans, the banks have not responded positively to this.

After considering all these factors, the cost of vehicles imported from Japan will increase by 10 - 15 percent of their production costs, he says.

Accordingly, the price of vehicles are expected to rise as follows :

Toyota Vitz by Rs 4.5 - 5 million, Toyota Passo by Rs 3.8 million - 4.2 million, Toyota Premio by Rs 9 - 9.5 million, Toyota Axio by Rs 7.5 million - Rs. 7.8, Toyota Rise Rs 7 million - Rs. 7.5 million, Toyota C-HR by Rs. 8 million - Rs. 8.5 million, Honda CR-V by Rs. 12 million - Rs. 12.5 million and all Suzuki vans by Rs. 3.2 and 3.5 million.