Sri Lanka Raises Vehicle Import Taxes

Sri Lanka has imposed new excise duty for all imported hybrid vehicles and petrol vehicles, Deputy Director General of Customs Ajantha Dias told Asian Tribune.

According to him, hybrid cars with engines below 1,600 cubic centimeters will see an imposition of 8 per-cent excise duties, engines above 1600 cc excise duty will be increased to 24%, hybrids between 2000 to 3000 CC excise duties will go up close to 75% and above 3,000 CC to 100%.

Meanwhile the excise duty on petrol vehicles with engines below 1,000 cubic centimeters will see an imposition of 38 per-cent excise duty and engines between 1000 to 1500 cc excise duty will be increased to 43%, he said.

According to the circular issued by the finance Ministry, used Petrol vehicles up to 02 year can be imported to the country. Earlier it was 31/2 years.

He said that there were more than 1000 hybrid electric vehicles imports during the last three Months in Sri Lanka.

Earlier the government had given the tax concessions on import of hybrid electric vehicles and only 15% tax and a 12% VAT was charged.

Hybrid electric vehicles will reduce the fuel cost and safeguard the environment. A hybrid vehicle combines an internal combustion engine (petrol or diesel) and one or more electric motors to drive it.

Electric motors are driven by power supplied by much advance batteries which again charged by the power supplied by the internal combustion engine while the vehicle is driven by it.

As a result overall fuel consumption of the vehicle improves and runs more km with 1 l of petrol.