Seems like the Sri Lanka honeymoon with Hybrid vehicles is over. I received the following SMS Ada Derana News Alert on my Dialog powered mobile phone. It’s about new total tax regulations for Hybrid and other vehicles to Sri Lanka. The Sri Lankan Treasury Secretary has informed that these new tax laws are effective from 21st April.
Total taxes on hybrid cars with below 2000cc will increase from 38-50% 2000-3000cc 75%, above 3000 cc to 100% – Adaderana.lk
Total taxes on cars below 1000 cc increased from 95-120%, 1000-1600 cc from 119%-128%, Trishaws 38%-50.
Total taxes on all petrol and Diesel cars above 1600 cc are to be remained unchanged.
These taxes seems to be effective regardless of whether they are imported or made in Sri Lanka. another blow for locals. Expect the prices of Sri Lanka cars for sale to skyrocket within the next few days.
There was a good inducement in Sri Lanka in the past few months for people to buy hybrid vehicles because of the tax concessions those vehicles enjoyed. And that was one of the few good things for the SL consumers because it encourages and enabled middles class Sri Lankans going to buy a new car to buy a good quality, ecofriendly and fuel efficient hybrid vehicle. But now with this tax increases I don’t know how competitive the hybrid cars will be in future. That’s sad