Deputy Finance Minister Dr. Anil Jayantha has urged the public not to be misled by claims that vehicle prices will sharply increase following the government’s latest decision to impose additional taxes on vehicle imports.

Speaking on the issue, he said misinformation was being spread suggesting vehicle prices would rise by 150%, describing such claims as “completely false.”

Dr. Jayantha explained that the measure is a temporary three-month surcharge aimed at delaying non-essential private vehicle imports and easing pressure on foreign exchange reserves during a period of economic uncertainty.

“The message we are giving is simple: if you can postpone importing a vehicle for personal use, please do so. This is not a move intended to increase vehicle prices,” he said.

He clarified that the new measure does not amount to a direct 150% increase in taxes or vehicle prices. According to him, existing taxes on vehicle imports currently stand at around 130%, and the new surcharge mechanism has been misunderstood in public discussions.

He also stressed that vehicles imported under Letters of Credit (LCs) opened on or before May 15, 2026, will not be affected by the new surcharge.

“Even if those vehicles arrive months later, they will continue to be taxed under the previous rates. The new tax structure only applies to LCs opened after May 15,” he said.

The Deputy Minister said there was no reason for consumers to rush into vehicle purchases due to fears of rising prices, warning that some parties could attempt to use public confusion as a sales tactic.

He further noted that motorcycles, three-wheelers and vehicles used for commercial purposes are excluded from the temporary measure.

According to Dr. Jayantha, the move is designed to manage pressure on foreign exchange and reserves while maintaining economic stability and preventing unnecessary import demand during the three-month period. (Newswire)

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