Customs Dept. to collect increased taxes on motor vehicles

The Customs Department has decided to collect the increased taxes on motor vehicles from tomorrow.

This decision has been taken based on the advice from the Ministry of Finance and Planning.

Taxes on motor vehicles , three-wheelers and motor-bikes were increased Saturday.

The tax for cars that use petrol under 1000cc has been increased to 200% from 120%.

According to the Ministry of Finance and Planning the tax imposed on petrol vehicles which between 1000 cc to 1600 cc have been increased by 71%, while the tax on petrol vehicles between 1600cc to 2000cc have been increased by 64%.

Meanwhile, hybrid vehicle production taxes below 2000 cc have been increased to 60% from 51%.

The communique went onto say that production duties on vans that consume diesel which can
transport 13 to 20 passengers have been increased to 125%, while diesel vans that can transport less than 13 individuals have been increased to 250%.

It also noted that taxes on three wheelers which use petrol and gas have been increased to 100% from 51%.

Moreover ,taxes on motorbikes have been increased by 39%.

According to the Ministry of Finance and Planning the increase was made to ensure a drop in the vehicles imported to the country in order to reduce the high traffic congestion prevalent.

The Ministry also noted that this will help bring down the use of fuel by motorists.

However, there will be no change in the tax imposed on tractors, buses and lorries.

Meanwhile, the Ministry also noted that excise duty on cigarette and liquor have also been revised.

Thereby the tax imposed on imported beer will be increased by Rs. 50  per litre, excise duty on local beer will be increased by Rs.5 per litre while excise duty on hard liquor will be increased by Rs.60 per litre.

Furthermore, the price of all brands of cigarettes have been increased by one rupee.

The communique added that import duty on vehicle spare parts have also been increased.