LNP – Vehicle prices to shift with changes in import tax limits: Importers

If the current tax limits on vehicle imports are changed, the selling prices of vehicles in the market will also be affected, according to vehicle importers.

The Vehicle Importers’ Association of Sri Lanka said that the estimated prices can be calculated once vehicle imports resume under the existing tax rates.

However, they noted that if the government increases the tax rates, then the vehicle prices too will automatically rise, while a reduction in tax rates would lead to lower prices.

Currently, the tax amount levied on a Japanese car in the local market is approximately 300% of its manufacturing price.

The association expressed confidence that the significant increase in the prices of used vehicles—caused by reduced supply due to import restrictions—will normalise with the resumption of vehicle imports.