AMN/ WEB DESK
The Sri Lankan government has introduced revised import taxes on vehicles through a special gazette notification, effective February. Excise duties between 200 percent and 300 percent will apply, based on engine cylinder capacities and motor power. Agency sources quoted the President of the Vehicle Importers Association of Lanka, Indika Sampath Merenchige that Vehicle prices are likely to rise by about 20 percent due to these taxes which could go further up due to VAT.
The new policy is expected to impact vehicle affordability and the overall automobile market, prompting industry concerns about potential sales declines. Passenger car imports were suspended on the island in 2021 due to economic concerns triggered by to COVID-19 pandemic and lockdown. As the severe economic crisis continued to persist, authorities decided to further continue with the restrictions on vehicle imports. Meanwhile, in June last year, the government announced a plan to gradually lift the restrictions by early 2025.