The Cabinet of Ministers yesterday approved the proposal brought by Transport and Civil Aviation Minister Nimal Siripala de Silva to declare a 3-month concessionary period to pay arrears on taxes for luxury, semi luxury and semi luxury dual purpose vehicles.
The Minister also suggested that only a 5 percent levy is imposed during the concessionary period commencing from September 1 to November 30, 2017.
An annual tax for the following classes of vehicles is imposed for seven years from the day of registration:
- Luxury Vehicles – (Diesel motor cars exceeding 2500 CC and petrol motor cars exceeding 2000 CC)
- Semi Luxury Vehicles – (Diesel motor cars 2201 -2500 CC, Diesel jeeps exceeding 2200 CC, petrol cars 1801 -2000 CC, petrol jeeps exceeding 1800 CC)
- Semi Luxury dual purpose vehicles – (Diesel cabs exceeding 2200 CC, Petrol cabs exceeding 1800CC)
The first instalment should be paid to the Motor Traffic Department while the remaining instalments are paid either to the Motor Traffic Department or to the insurance company.
Omission of taxes are liable to a 50 percent levy and the total due amount is above Rs. 350 million.