Sri Lanka, Oct. 28 -- The prices of all vehicle models in Sri Lanka could increase beyond affordable limits following the government's proposal to impose a 15 per cent tax on vehicles, Vehicle Importers Association of Sri Lanka (VIASL) Chairman Prasad Manage warned.

Addressing the media, Manage said the price hikes are expected to take effect after the 2026 budget.

He explained that vehicle import duties are calculated based on the value of the vehicle in the exporting country, after deducting all consumable taxes. Importers currently receive a 15 per cent discount on the total price, meaning only 85 per cent of the value is subject to tax. "There is a possibility this 15 per cent discount could be removed after the budget," Manage said...