Vehicle Importers Association Chairman Mahinda Sarathchandra stated to media that prices of vehicles below 1000 cc would come down only by Rs. 25, 000 in the wake of the 15% tax reduction announced in Thursday’s mini budget while all hybrid cars would go up by as much as Rupees one million.
The custom duty for less than 1000cc vehicle is 172.5% which had been imposed on cars below 1000 CC was reduced to 155.25% which would result in a decrease of Rs. 25, 000 for cars below 1000 cc.
And he stated that however prices of hybrid Electric cars would go up by a huge amount due to the new tax system. he said the price of a Prius hybrid car would go up by Rs. 975, 000, Axio hybrid car by Rs. 725, 000 and Honda Fit hybrid car by Rs. 700, 000 because of the new taxation. He said the tax revisal would have an impact on vehicle importers.