As per fresh revision, Sri Lanka has reduced the import duties on 800cc and 1,000cc cars, which in-turn will benefit India-made smaller vehicles. However, the duty is higher on bigger engine capacity cars. Following the increase of the minimum unit tax from Friday, prices of vehicles above 1,000 cubic centimeter engine capacity will increase.
Based on a 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.
The tax range for smaller cars is expected to come down from its present tax range of 1.5 to 1.6 million Sri Lanka rupees to about 1.35 million. Whereas 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 gambit of raised import and customs duty.
