Increase of Vehicle imports and the new tax structure
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- Published on Monday, 02 April 2012 11:39
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The government has revised import taxes and excise duties on vehicles, liquor and cigarettes. The Treasury emphasized that the decision taken to revise import tax on vehicles is a decision taken for the economic development of the country.
The Deputy Secretary to the Treasury S R Attygala said that this decision was taken to save foreign exchange and to minimize expenditure on fuel. However, Tax on Agricultural and development vehicles, Lorries and buses has not been increased. Atltygala pointed out that this factor clearly shows that the decision has been arrived at taking into consideration the needs of the country. He vehemently rejected allegations made by certain groups that these tax increases have been made on the requirements of the IMF.
There has been a steep increase in the vehicle imports during the last two years. Compared to vehicle imports in the year 2009 there has been an increase by 127% in 2010 and this number increases by 147% last year compared to the imports of 2010.
The details of vehicle import increases in the years 2010 and last year, compared to the imports in 2009 on percentage-wise are as follows:
2010 2011
Motor Vehicles 127% 147%
Motor Cycles 61% 81%
Three Wheelers 163% 298%
Meanwhile the number of vehicles imported in the years 2009, 2010 and 12011 were as follows
2009 2010 2011
Motor Vehicles 3,421 37,134 54,285
Vans and Cabs 170 9,504 12,838
Three Wheelers 34,563 91,230 137,816
Motor Cyeles 139,000 224,998 252,318
Others (Buses, Tractors etc) 34,525 106,341 66,706
Total Vehicles 211,679 469,207 523,963
The tax structure applicable to vehicles with the new revision is as follows:\
|
Vehicles with CC capacity |
Manufacturing Tax prevailed |
New Manuf. Tax |
Total Tax prevailed |
New Total Tax |
|
Hybrid Vechicles |
||||
|
Less than 2000 CC |
8% |
14% |
51% |
60% |
|
More than 2000 CC |
24% |
40% |
75% |
100% |
|
More than 3000 CC |
40% |
57% |
100% |
125% |
|
Petrol Cars |
||||
|
Less than 1000 CC |
38% |
85% |
120% |
200% |
|
1000 – 1600 CC |
43% |
85% |
129% |
200% |
|
1600 – 2000 CC |
47% |
85% |
136% |
200% |
|
Over 2000 CC |
58% |
114% |
154% |
250% |
|
Over 3000 CC |
578% |
129 % |
189% |
275% |
|
Diesel Cars |
||||
|
Less than 1600 CC |
73% |
114% |
180% |
250% |
|
1600 – 2000 CC |
114% |
129% |
250% |
275% |
|
2000 – 2500 CC |
124% |
143% |
267% |
300% |
|
Over 2500 CC |
138% |
173% |
291% |
350% |
|
Vans - Petrol |
||||
|
13 – 20 Passengers |
28% |
41% |
103% |
125% |
|
Less than 13 passengers |
68% |
85% |
172% |
200% |
|
Vans - Diesel |
|
|
|
|
|
13 – 20 Passengers |
33% |
41% |
112% |
125% |
|
Less than 13 passengers |
102% |
114% |
230% |
250% |
|
Reconditioned Vehicles - Petrol |
78% |
143% |
189% |
300% |
|
Reconditioned Vehicles - Diesel |
138% |
173% |
291% |
350% |
|
Three Wheelers |
||||
|
Petrol, Gas |
8% |
40% |
51% |
100% |
|
Diesel |
15% |
40% |
61% |
100% |
|
Electric |
0% |
16% |
28% |
50% |
|
Double Cabs - Less than 1500 Kg Wt,. |
22% |
56% |
93% |
150% |
|
Double Cabs - Over 1500 Kg Wt,. |
32% |
56% |
110% |
150% |
|
Motor Cycles |
24% |
51% |
61% |
100% |
|
|
|
|
|
|
This tax structure came into effect from 31st March, 2011. (niz).
