Aug 17, Colombo: The Transport Ministry will declare a three month concessionary period from next month to pay the arrears of taxes for luxury, semi-luxury and semi-luxury dual purpose vehicles.
According to the Finance Act No 16 of 1995, registered owners of travelling classes of vehicles should pay an annual tax for seven years since its registration.
The first installment of the tax should be paid to the Department of Motor Traffic at the registration and the rest installments could be paid either to the department or to the insurance company, which will be sent to the Treasury.
Omission of taxes are liable to a 50% levy and the total amount due to the government has exceeded Rs. 350 million.
Considering that such omissions may be due to reasons beyond the control of vehicle owners, the Ministry is granting a three-month concessionary period from 01 September 2017 to 30 November 2017 to pay the taxes due with only 5 percent of the penalty.
The Cabinet of Ministers has approved the proposal made by the Transport and Civil Aviation, Minister Nimal Siripala de Silva to declare the three month concessionary period and to charge 5% levy during that period.