President Maithripala Sirisena has decided to retain the hitherto imposed import tax of 5 per cent on imported electric vehicles, rejecting the 50 per cent tax proposed in Budget 2016.
This decision was taken at yesterday's Cabinet meeting which was reportedly skipped by Finance Minister Ravi Karunanayake. A number of UNP Ministers, including Malik Samarawickrama and Sagala Rathnayake, however agreed with the President's suggestion conceding that increasing the tax on electric vehicles was a mistake.
President Sirisena has said that although he is the Minister of Environment, he was not consulted when the decision to increase the tax was taken.
The government has decided not to subject vehicles imported on Letters of Credit opened prior to the presentation of Budget 2016, to new taxes proposed in the budget.
This decision was taken after President Sirisena tabled a proposal at yesterday's Cabinet meeting to this effect. Minister of Higher Education, Lakshman Kirielle said that Prime Minister Ranil Wickremesinghe had also mooted the same idea.
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