Hybrid cars demand on a rise in Sri Lanka
Hybrid cars as most of us know is a name given to vehicles which are equipped with two different power engines simultaneously. Usually a combination of internal combustion engine & electric motor. These cars are a blessing for reduction of environmental pollution, less fuel consumption and making the world a better place to live in.
Today’s most popular hybrid cars like Honda Civic, Honda Insight and Toyota Prius have surpassed the expected reduction levels that means recommended levels suggested for a typical passenger vehicle should be equal to 5.5 metric tons of carbon dioxide as per EPA, but these hybrid vehicles producing 4.1, 3.5, and 3.5 tons shown a major improvement in carbon dioxide emissions.
Hybrid vehicles can reduce air emissions of smog-forming pollutants by up to 90% and cut carbon dioxide emissions to half. Surely this is the reason behind rise in demand for hybrid cars at very fast pace around the world. Many countries are supporting the use of Hybrids by providing economic benefits.
Sri Lanka a natural Paradise and its people love their country and do their best to protect and preserve its natural beauty and enjoy the nature. Government is also very supportive as tourism is one of the major revenue industry.
Sri Lanka government has kept the duty on import of electric and hybrid cars much lower as compared to petrol or diesel cars to promote eco-friendly vehicles in the country. Hybrid cars with engines below 2,000 cubic centimeters total duties will go up from 38 percent close to 50 percent only. On hybrids between 2,000 to 3000 cc duty will go up close to 75 percent and above 3,000 cc to 100 percent.
But duty on cars with petrol engines of capacities below 1,000 cubic centimeters the total tax rate will go up from the current 95 percent to 120 percent. Between 1000 to 1,600 cc the tax rate will go up from 119 to 128 percent. On three wheelers the rate will go up from 38 percent to 50 percent. Total taxes on all petrol and diesel cars above 1600cc will remain unchanged.
Duty applicable for Import of Hybrid car in Sri Lanka
- A. Duty applicable for payment for hybrid car or hybrid vehicle with below 2000cc and which is not older than 2 years at the time of shipment is approximately 50% of the CIF.
- B. Duty applicable for payment for hybrid car or hybrid vehicle which is 2000cc-3000cc, which is not older than 2 years at the time of shipment, is approximately 75% of the CIF.
- C. Duty applicable for payment for hybrid car or hybrid vehicle which is above 3000cc and which is not older than 2 years at the time of shipment is approximately 100% of the CIF. In spite of increase in duties on used hybrid cars people in Sri Lanka are demanding more of hybrid cars.
At the same time Japanese carmakers widely recognized as leading exporters of hybrid cars around the world are competing each other to be number one. The new Honda Insight and Toyota Prius are the best selling hybrid cars in Japan and world over. Honda sold 10,481 new Honda Insight in Japan and Toyota plans to sell 10,000 Prius per month in Japan. The markets for hybrid vehicles are growing rapidly around the world as people are aware of benefits on environment and governments are supportive too for long term economic and environmental benefits.
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