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Vehicles tax to more than double, NA decides

June 10, 2014
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Vehicles tax to more than double, NA decidesThe National Assembly today saw discussion on the vehicle tax revision. The government had proposed for 110 percent tax on all vehicles with 1,500 cc or below. However, after repeated pleas from the opposition members, the House decided to bring down the tax to 100 percent.

Any person willing to buy light vehicles below 1,500 cc will now be levied 45 percent customs duty, 45 percent sales tax and 10 percent green tax.


However, customs duty will not be levied for those vehicles imported from India. This means, light vehicles with 1,500 cc or less imported from India is liable only for a 55 percent tax. Likewise, other categories of vehicles imported from India would all be waived-off the customs duty.

Meanwhile, the House passed the tax for other vehicles as proposed by the government.

For vehicles ranging from 1,500cc-1,799cc, the tax revision has now gone from 50 percent to 115 percent. And it is up from 65 percent to 120 percent for vehicles which have the cylinder capacity (cc) in between 1,799-2,500.


For the vehicles, 2,500cc-3,000cc, the new rate is fixed at 125 percent, up from 70 percent. And vehicles more than 3,000cc will now be levied 180 percent. The existing tax rate was 70 percent.

The House also saw discussion on levying taxes on electric cars. Some of the members said that there should be some taxes levied on electric cars. They said electric cars can also cause traffic and parking congestion. However, after much deliberation the House decided not to impose any tax on electric cars.

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