Prices of cars above 1000cc engine capacity and three-wheelers will increase as a result of the Minimum Rate Tax increase which came into effect midnight yesterday, the Vehicle Importers Association said today.
Speaking to the media Chairman of the Association Indika Sampath Merenchige added that this would completely change the pricing structure of cars and three-wheelers.
He added that the approximate taxes for a three-wheel alone would come up to Rs.400,000. The taxes for a Toyota Prius which currently stands at Rs. 3,300,000 would increase to Rs. 7,200,000 and that the Nissan X-trail which has a current tax of Rs. 4,000,000 would increase to Rs. 8,000,000, Indika said.
He further claimed that with the increase the Association members would be forced to mostly import cars that are below 1000cc and that it would completely change the landscape of the current vehicle market in Sri Lanka.
The minimum tax for a vehicle that is 1500cc is Rs. 3,000,000. Between 1500cc-1600cc one Unit would be taxed Rs. 3,500 and Rs. 4,000 there-on, Indika added.
Vans and lorries have not been subjected to this new tax structure hence the prices would remain unchanged.
