Srilanka, May 22 -- The Government has issued Gazette Extraordinary No. 2421/41 revising the luxury vehicle taxation thresholds. Previously, petrol and diesel vehicles priced above Rs 3.5 million were subject to this tax. Due to the sharp rise in vehicle prices over the past five years, the threshold has now been increased to Rs. 5 million. The existing Rs. 6 million threshold for electric vehicles remains unchanged.

These tax revisions aim to strike a balance between supporting consumers facing increased vehicle costs and maintaining essential Government revenue. The policy is designed to facilitate economic activity across key sectors, particularly exports, tourism, manufacturing, and investment, while also generating State income and...