Three months grace period to pay taxes on luxury vehicles ends tomorrow

The Department of Motor Traffic (DMT) yesterday announced that the three-month grace period offered to motorists to pay the luxury tax imposed on luxury, semi-luxury and dualpurpose motor vehicles will end tomorrow (30),

Speaking to Daily Mirror, DMT Commissioner General A.H.K. Jagath Chandrasiri added that and the grace period given would not be extended.

The three month grace period began on September 1, he said. “A five per cent penalty in addition to the tax arrears will be charged from the applicant during the grace period,” Mr. Chandrasiri said.

He also said the owners of luxury, semi-luxury and dualpurpose vehicles were allowed to make a part payment during the registration process. Courtesy:

“A five per cent penalty in addition to the tax arrears will be charged from the applicant during the grace period

However, many of the owners defaulted on the balance payment and the grace period announced by the Finance Ministry was to encourage them to pay the balance tax that was due, Mr. Chandrasiri said.

Accordingly, the Finance Ministry claimed the decision was taken in line with Act No.16 of 1995.

Cabinet in October last year voted to amend the Finance Act and the grace period given was based on the amendment that was passed, he said.