The interim budget of the new government today (29 January) proposed to reduce the import tax on motor vehicle of less than 1,000 cc engine capacity.

Meanwhile, the depreciation tax value on the import of hybrid motor vehicles would be removed from midnight today, said Finance Minister Ravi Karunanayake.

While expressing his views to www.adaderanabiz.lk, Sri Lanka Motor Vehicle Importers’ Association chairman Indika Sampath Merinchege said through the removal of the depreciation tax value would mean something like increasing the tax by 10 per cent imposed on the import of around a two year old hybrid vehicle.

“This will result in a definite increase in prices of hybrid motor cars. This proposal is equivalent to increasing the tax on these vehicles by 10 per cent,” Said Sampath Merinchege.

Meanwhile, he added that under the interim budget proposals the prices of vehicles below 1,000 cc capacity would decrease.

Meanwhile, Finance Minister Ravi Karunanayake said local vehicle assemblers of motor vehicles have not properly paid their due taxes to the government and that steps would be taken to obtain these taxes.

The new government’s interim budget also proposes an annual tax of Rs. 1.5 million on all institutions importing vehicles into Sri Lanka, irrespective of whether they import old or new vehicles.