Used vehicle prices to go up

The prices of used vehicles imported to the country would rise, as the government has changed the depreciation rates applied on customs duty on used vehicles in the 2014 budget, Vehicle Importers Association Chairman Mahinda Sarathchandra said.

The tax currently imposed on used vehicles based on value depreciation was 90% for vehicles used up to six months old, 80% for those used from six months to a year, 75% for vehicles used from a year to 18 months and 70% for vehicles used for 18 months to two years. However, according to post-budget rates a 90% tax would be imposed on all vehicles used for up to two years.

Mr. Sarathchandra said the new tax increase would result in the prices of small cars and three-wheelers being increased by 8%, and diesel vans and double-cabs by 6% and 7% respectively.(daily mirror)