Luxury tax to make car prices exorbitant

Friday, 8 March 2019 00:20 - - {{hitsCtrl.values.hits}}

The luxury tax proposed by the 2019 Budget presented on Tuesday is estimated to send car prices soaring higher - between Rs. 600,000 and Rs. 4.2 million.

The analysis of 2019 Budget moves by KPMG Partner Shamila Jayasekara sent shockwaves among participants of the firm's post-Budget forum yesterday. She said that the Government aims to raise the highest amount of Rs. 48 billion via revisions in excise duty, depending on the engine capacity or kilowatts, as well as the luxury tax.

The revision of excise duty and implementation of luxury tax on motor vehicles were effective from 6th March 2019. "The revision of the excise duty will have a minimal impact on smaller personal vehicles. In addition, the 200% cash margin requirements on motor vehicle imports will be removed in the near future," Finance Minister Mangala Samaraweera said.