Sri Lanka will not reduce vehicle taxes this year, Duminda Hulangamuwa, economic advisor to President Anura Kumara Dissanayake said in a television show.
“Some people are taking a ‘wait-and-see’ position, hoping duty will be reduced,” Hulangamuwa told a talk show in Sri Lanka’s Derana television late Monday.
“If someone is expecting duty to be reduced it will not happen within this year.”
Sri Lanka imposes high taxes on cars and also motor cycles and three wheelers as a revenue measure. This year taxes were hiked to ‘save foreign reserves’.
Multiple economic controls are placed on the people and country including exchange controls, due to forex shortages coming from central bank money printing to cut rates.
In 2025 an import duty was also slapped on cars which critics say will lead to leakages to the assembly sector.
(economynext.com)
(Except for the headline, this story, originally published by economynext.com has not been edited by SLM staff)
