Tax concessions for eco-friendly vehicles

Nadira GUNATILLEKE and Uditha KUMARASINGHE

COLOMBO: The Government has decided to implement a new duty structure to promote the import of clean fuel vehicles from 2009 and to provide tax concessions on par with existing schemes applicable to local industries for local assembly of clean fuel vehicles with a local value addition of 25 per cent, Information and Media Minister and Cabinet Spokesman Anura Priyadarshana Yapa said.

The Cabinet has granted approval to the Cabinet memorandum submitted by Environment and Natural Resources Minister Champika Ranawaka in this regard.

Addressing the weekly Cabinet press briefing held at the Government Information Department Auditorium yesterday, Minister Yapa said the Government has taken a policy decision to promote environmental friendly modes of transport and offer tax concessions for locally assembled environmental friendly vehicles.

A special committee consisting of officials and technical experts has been appointed to look into the issue and make recommendations. Depending on the recommendations, the Government's tax scheme will be changed to promote the import of environmental friendly vehicles and environmental friendly vehicles manufactured locally, the Minister said.

Under the present tax scheme of the Government, all imported vehicles are subjected to customs duty and a number of taxes including value added tax.