NEWS & EVENTS

Motor Vehicles 475. Honorable Speaker, in the last budget we introduced the engine capacity based unit rate method for Excise Duty calculation for motor cars. Therefore, I propose to extend the engine capacity based Excise Duty to Motor Cycles as well. Honorable Speaker, government is committed to encourage green energy consumption; I propose to reduce Excise Duty on electric cars with motor power less than 100 KW. 476. To support local industries, I propose to extend the age limit for importing lorries and refrigerated trucks of capacity over 5 Metric Tonne to be extended to 10 years. Further, several duty revisions to correct anomalies in the duty structure will also be made. These changes will be implemented with effect from midnight today. 477. Honorable Speaker, with regard to motor vehicles, passenger safety is of paramount importance. As an initial step to encourage safety, I propose to set 88 motor vehicle standards of SRS, air bags, ABS and three point seat belts will be made compulsory for motor cars to ensure the road safety. 478. Presently Vehicle Entitlement Fee (VEF) is paid at the time of opening of LCs, to the banks. I propose to change this procedure. This Fee will be paid at the Sri Lanka Customs at the time of clearance of the vehicle. Upon payment a certificate with details of the imported vehicle will be issued. 479. There are over 6 million vehicles, in the country of which a considerable number are very old causing many environmental problems. Therefore I propose tax incentive on exporting vehicles which are more than 5 years old. Honorable Speaker, any export of not less than USD 200,000 that constitute minimum of 20 vehicles will be granted an Excise Duty waiver of 50 percent from the payable duty for importing a motor car with CIF value not exceeding USD 50,000.