Massive duty increase on motor vehicles, liquor and fags

The government has revised the Customs Duty, Excise (Special Provision) and Excise Duty on Motor vehicles with effect from March 31, 2012. This was mainly due to the increase in traffic on the roads and increasing demand for fuel.

Accordingly the duty imposed on Hybrid cars less than 2000 cubic centimeters (cc) have been increased from 8 percent to 14 percent while the total duty levied on this class of vehicles have been increased from 51 percent to 60 percent.

Also, the duty on Hybrid vehicles more than 2000 cc have been upped from 24 percent to 40 percent while the total duty imposed on these vehicles have been increased from 75 percent to 100 percent.

Meanwhile, the duty on Petrol cars less than 1000 cc have been increased from 38 percent to 85 percent while the total duty imposed on these cars have been increased from 120 percent to 200 percent.

The manufacturing duty levied on Petrol cars between 1000 cc and 1600 cc have been increased from 43 percent to 85 percent while the total duty imposed on them have also been increased from 129 percent to 200 percent.

In addition to that, the duty imposed on petrol cars between 1600 cc and 2000 cc have been increased from 47 percent to 85 percent while the total duty levied on these increased from 136 percent to 200 percent.

For diesel cars less than 1600 cc, the duty increase is from 73 percent to 114 percent while the total duty imposed on these cars will be increased from 180 percent to 250 percent.

Taxes for diesel cars between 1600 cc and 2000 cc have been increased from 114 percent to 129 percent and the total duty imposed on them have been increased from 250 percent to 275 percent.

Meanwhile for petrol vans with a carrying capacity of 13 to 20 passengers, the duty has been increased from 28 percent to 41 percent while the total duty imposed on them has

The manufacturing duty levied on Petrol cars between 1000 cc and 1600 cc have been increased from 43 percent to 85 percent while the total duty imposed on them have also been increased from 129 percent to 200 percent.

increased from 103 percent to 125 percent. Diesel vans with this carrying capacity will experience a duty hike from 33 percent to 41 percent while the total duty levied would increase from 112 percent to 125 percent.

The duty imposed on petrol vans with a carrying capacity of less than 13 passengers have been increased from 68 percent to 85 percent and the total duty imposed has increased from 172 percent to 200 percent. For Diesel vans with this carrying capacity the tax hike would be from 102 percent to 114 percent and the total duty increase will be from 230 percent to 250 percent.

Petrol or Gas trishaws will witness an increased duty from 8 percent to 40 percent while the total duty imposed on them would increase from 51 percent to 100 percent.

Meanwhile for diesel trishaws the duty increase would be from 15 percent to 40 percent while the total duty levied on them would increase from 61 percent to 100 percent.

Also, electric trishaws which were not charged a duty previously will be charged a manufacturing duty of 16 percent and the total duty imposed on them would hence go up from 27 percent to 50 percent.

Double cabs with a capacity of less than 1500 kgs will experience a duty hike from 22 percent to 56 percent while the total duty imposed on them will increase from 93 percent to 150 percent. Double cabs with a capacity more than this will witness a duty increase from 32 percent to 56 percent while the total duty will increase from 110 percent to 150 percent.

In the case of motor bikes the manufacturing increase is from 24 percent to 51 percent while the total duty increase is from 61 percent to 100 percent.

Meanwhile the duty structure for vehicle spare parts imported to the country has also been revised. The existing duty structure will be replaced with a Specific duty or Advolarum duty, whichever is higher.

Duty increase on liquor and fags

Duties have also been increased on foreign and local liquor, as well as cigarettes. The expected income from this increase is estimated to be Rs.3 billion.

Accordingly, the import duty on foreign beer would increase by Rs.50 while the duty on local beer would increase by Rs.5. The duty imposed on hard liquor has been increased by Rs.60. Meanwhile the duties on cigarettes have been increased, and the price of a cigarette has gone up by Rs.1.