Electric vehicle users suggest amendments in budget proposal
The aim of the government, as suggested in the 2018 Budget, to increase electric vehicles in Sri Lanka is nullified due to the tax imposition on electric vehicles ranging from 100kw to 150kw since the middle class utility vehicles range from 50kw to 150kw, according to the Electric Vehicles Club of Sri Lanka.
At a media briefing held on Thursday in Colombo, Mahesanka Abeywickrama, club co-founder and Interim Committee Member said that they are thankful to Mangala Samaraweera, Minister of Finance, for taking steps to improve electric vehicle usage in Sri Lanka, imposition of carbon tax on fuel vehicles; install electric vehicle chargers and the reduction of taxation for buses and trains.
However, the club is of the view that imposing higher tax percentage for electric vehicles over 100kw is not practical and would reduce the import of vehicles in this range as these middle-class utility electric vehicles range from 50kw to 150kw. They are not in the luxury or sports range. To balance the issue, the club suggested to the government to expand the range from 50kw to 150kw.
The decision not to give tax relief for used vehicles imports is not practical, the club points out as brand new electric vehicles are still not imported while the efficiency of these cars would remain throughout the years as against hybrid and petrol vehicles.
Mr. Abeywickrama indicated that in the electric vehicles, the main component which would depreciate is the battery, due to constant running and with the replacement of a new battery, the old battery could be used for home solar power for five years and after the period there is a process of re-exporting these batteries.
Even if new electric vehicles are imported next year their prices would be extremely high and the fact that European countries give special grants when purchasing electric vehicles, their prices would go down. Importing the old cars would result in getting the benefit of those grants for the imported used vehicles, to the Sri Lankan purchasers. Accordingly the club proposed that the government should allow the import of at least two year-old electric vehicles.