10 November 2016 08:25 pm Views - 22759
In his budget speech, the minister said that an engine capacity based unit price method was introduced for motor cars in the last budget and that an engine capacity based Excise Duty for Motor Cycles was proposed.
He further said several duty revisions to correct anomalies in the duty structure will also be made and changes will be implemented with effect from midnight today.
“This is to increase the age limit for importing lorries and refrigerated trucks with capacity over 5 Metric tonne and to be extended to 10 years to support local industries,” Minister Karunanayake said.
It was also proposed to set 88 motor vehicle standards of Supplemental Restraint System (SRS- warning lights), air bags, anti-skid Braking System (ABS). “Three point seat belts will be made compulsory for motor cars to ensure the road safety as an initial step to encourage safety,” the minister said.
Presently Vehicle Entitlement Fee (VEF) is paid at the time of opening of Letter of Credits (LCs), to the banks. This Fee will be paid at the Sri Lanka Customs at the time of clearance of the vehicle. Upon payment a certificate with details of the imported vehicle will be issued.
The minister said that there are over 6 million vehicles in the country and there are many old vehicles which creates environmental problems.
“Therefore, I propose tax incentive on exporting vehicles which are more than 5 years old,” the minister said.
The Luxury and Semi- Luxury Motor Vehicle Tax would also be revised.
The Loan to Value ratio (LTV) to be limited for vehicle categories such as 25 percent for Three Wheelers, 50 percent for Motor Cars and Vans, 90 percent for Commercial Vehicles as Lorries and Heavy Vehicles.
The Economic Service Charge (ESC) will be reduced to Rs.12.5 million per quarter and the ESC will be charged at the point of Customs on the importation of motor vehicles.