Sri Lanka raises taxes on imported vehicles

COLOMBO, April 25 (LBO): Sri Lanka has raised import duties on several categories of petrol-engined cars and three wheelers with steeper increases seen in larger hybrid vehicles, which had exceptionally low taxes earlier, officials said. A senior treasury official said there were revisions on several categories of vehicles. On petrol cars with standard engines with capacities below 1,000 cubic centimeters the effective total tax rate will go up from the current 95 per cent to 120 per cent. Between 1000 and 1,600 cc the effective rate will go up from 119 to 128 per cent. On three wheelers the effective rate will go up from 38 per cent to 50 per cent. On hybrid cars with engines below 2,000 cubic centimeters total duties will go up from 38 per cent close to 50 per cent. Deputy director general of customs Ajantha Dias said an excise duty was raised by 8.0 per cent on small hybrids but it will take up the total duties by a larger amount when added together. On hybrids between 2,000 and 3000 cc duty will go up close to 75 per cent and above 3,000 cc to 100 per cent. In the past two months about 3,000 hybrids have been imported to the country, Dias said. At the current rates even the large hybrids are taxed at a lower rate than smaller petrol cars.