Regime has raised import duties on several categories of petrol engined cars and three wheelers with massive increase in larger hybrid vehicles which had exceptionally low taxes initially according to Treasury Secretary P.B. Jayasundara. On hybrid cars with engines below 2,000 cubic centimeters total duties will go up from 38 percent close to 50 percent. Then On petrol cars with standard engines with capacities below 1,000 cubic centimeters the effective total tax rate will go up from the current 95 percent to 120 percent.
Between 1000 to 1,600 cc the effective rate will go up from 119 to 128 percent. On three wheelers the effective rate will go up from 38 percent to 50 percent.
For the moment the total taxes on all petrol and diesel cars above 1600cc will remain unchanged.
It is learnt that tax increase was done due to IMF loan interests that has to be paid, huge expenditure on Rajapakse Family, huge expenditure on Ministers as well as Deputy Ministers, to cover up funds used and require in future to carry out election malpractices and also to pay some of the oppostion MP's who are supporting current oppostion leader to stay in that post to avoid any threat from UNP.
