Vehicle Importers said that prices of a Wagon R will increased by Rs.250,000, Alto by Rs.150,000, Axio and Aqua by Rs.600,000, Primio and CHR by Rs. 75,0000 as a result of tax increases introduced by the budget yesterday. 

According to the budget proposals, tax on Petrol vehicles (less than 800cc) will be increased by Rs. 150000. The tax on petrol vehicles (less than 1000cc) has been increased by Rs. 175,000 while the tax on vehicles less than 1300 cc has been increased by Rs 500000.

Meanwhile, the tax on three Wheelers (200cc) has also been increased by Rs. 60000 while the tax on electric vehicles (less than 70 Kilowatt) will be reduced by Rs. 175,000.

Vehicle prices in Sri Lanka saw a steep increase in recent years due to a series of tax increases introduced by the current government.