Sri Lanka has revised its import duty policy. As per the new revision, the import duties on 800cc and 1,000cc cars has reduced, thereby benefiting India-made smaller vehicles. However, the duty is higher on bigger engine capacity cars. The increase in minimum unit tax will be effective from Friday, which in-turn will see an increase in prices for vehicles having over a 1,000cc engine.
As per the gazette notification, the 800 and 1,000cc cars would have a lower import tax band. This means that India’s largest automaker Maruti Suzuki can offer its popular line-up including Maruti Alto 800, Alto K10, Celerio and the WagonR comfortably. The decision is particularly beneficial for Maruti Suzuki as their plans to set up a plant in Sri Lanka failed to materialise.
Higher taxes on larger cars and SUVs will mean that import tax on certain vehicles which was at SLR 54 lakh will be increased to SLR 76 lakh. The made-in-India three-wheeler autorickshaws will also have to shell out a little extra as they also come under the ambit of raised import and customs duty. The tax range for smaller cars is expected to come down from its present range of 1.5 to 1.6 million Sri Lanka rupees to about 1.35 million.
