Prices of electric vehicles to come down

z_pii-PricesThe prices of electric vehicles would come down drastically with the mini budget proposals which would help to create a new vehicle culture in Sri Lanka, said Managing Director, Care Drive Motor Engineering Ltd, Isuru Senaratne.

He said that this move would increase sales and as a result infrastructure for this segment would pick up providing more employment opportunities. “Fuel stations would upgrade to meet the requirements of eclectic vehicles just like when the hybrids were introduced.”

The move would also promote the green concept and encourage low income families purchase cars and improve their living standards with the proposed reduction of the taxes applicable on motor cars with engine capacity less than 1,000 cc by around 15 percent.

Senaratne however said that prices of hybrids would increase by a minimum of Rs. 600, 000 and this was a surprise move. “This is a move that the government did to generate finances,” he said.

However there should be a common long term policy on the import of hybrids since the taxes for the hybrids segment have being changing at each budget.”It may also be a good idea to provide some king of relief to individuals who ordered hybrids and paid advances before the budget.”

He also said that the second hand market of hybrids would also increase and in contrast second hand market for 1000cc and under would reduce.

He also said that it was a good move to maintain the low tax of vans, buses and heavy agriculture vehicles which would help tourism, agri and industrial sectors.

He also welcomed the move to stamp a tax of 1.5 million on vehicle importers. “This segment never paid any taxes up to now and I think they too should help the economy of the country by this kind of contribution.”

To encourage low income families to purchase cars to improve their living standards, the proposal to reduce taxes applicable on motor cars with the engine capacity less than 1,000 cc by around 15 percent would immensely help. The present tax structure on motor vehicles has created an unhealthy disparity between hybrid and normal motor cars, he said.