Govt. imposed new tax on luxury vehicles, importers’ association says

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The government has imposed a new tax on luxury vehicles, says the Vehicle Importers Association of Sri Lanka (VIASL).

The chairman of the Association, Mr. Indika Sampath Merenchige said the government is spreading a false statement that the luxury tax levied on motor vehicles is not subject to small cars.

On October 29th, the Finance Ministry announced that, as proposed in Budget 2019 by Minister Mangala Samaraweera, in the amendment to the Finance Act, the luxury tax on motor vehicles will be levied only for luxury cars and jeeps, and the new tax does not apply to any small cars.

“Vans, single cabs, double cabs, motorcycles and motor tricycles are not subject to this luxury tax. Earlier, double cabs were subject to the luxury tax category but it will be thrown off from November 1st,” the Ministry said further.

“Accordingly, this luxury tax will not be applicable for Toyota Vitz, Suzuki Every, Toyota Roomy, Suzuki Alto, Suzuki Baleno, Daihatsu Petrol, Honda Grace, Suzuki Wegon R and Toyota Aqua and also this luxury tax is not subject to normal Axio, Premio and Allion models,” the statement issued by the Finance Ministry said further.