Budget 2019 : Luxury vehicle taxation

COLOMBO (News 1st) - The budget proposal of 2019 has imposed luxury taxation on motor vehicles. The budget states that the taxes are to be imposed on Cost Insurance Freight(CIF) value. The taxes are to be added to the original price when the tax-free threshold is exceeded are as follows:

• Diesel vehicles: When cost exceeds by Rs 3.5mn - tax added will be 120%.
• Petrol vehicles: When cost exceeds by Rs 3.5mn - tax added will be 100%.
• Hybrid Diesel: When cost exceeds by Rs.4mn - tax added will be 90%.
• Hybrid Petrol: When cost exceeds by Rs.4mn - tax added will be 80%.
• Electric vehicle: When cost exceeds by Rs.6mn - tax added will be 60%.

Additionally, the same taxes are to be followed when an imported vehicle is locally assembled.