Ending a near five-year ban on vehicle imports, the first batch of imported cars arrived at the Colombo Port last week in line with the Government’s decision to ease import restrictions on vehicles.
The first vehicle consignment arrived early last week from Thailand marking the resumption of vehicle imports for personal use. Another batch of vehicles from Japan arrived at the Hambantota Port on February 27.
According to vehicle importers, prices of vehicles will be high due to the increase in taxes such as the special import tax based on the value of the vehicle, a luxury tax, Customs tax and the cost incurred, insurance and Freight on top of the existing 18% VAT. A recent gazette notification of a 50 percent Customs surcharge has jacked up the price of cars and jeeps.
The price of second-hand vehicles is expected to drop by around 10 to 15 percent with the entry of new vehicles to the market.
