Tax on Motor vehicles also hiked

Tax on Motor vehicles which include cars, vans, trishaws and motor bicycles have been increased immediate effect. The Ministry of Finance and Planning announced today that the increase was made to ensure a drop in the vehicles imported to the country in order to reduce the high traffic congestions prevalent. The Ministry also said that this move will help bring down the use of fuel by motorists.

The classifications of the Tax have been made to correspond with the engine capacity of the vehicles. Hybrid vehicle production taxes below 1000CC have been increased by 14 % with tax for all hybrids above 3000CC being increased by 57%.

Production duties for cars and vans have been classified into the fuel type used together with the engine capacity. The tax for cars that use Petrol under 1000CC have been increased by 85% with cars having an engine capacity of over 3000CC being increased by 125%. Production duties on Diesel cars have been increased from upto 114% to 173% to correspond with the engine capacity.

Import duty on vehicle spare parts have also been increased to correspond the highest value on either Specific Duty or Advolarum Duty disbanding the previous method of taxation on spare parts.

However there has been no change in the tax imposed on tractors, busses and Lorries.

 

Courtesy: DM Online