There is no truth in the speculation that no tax reduction had been made on three wheelers, motorcycles, vans and trucks, said Mr. S. R. Artygalle, Director General of the Department of Fiscal Policy of the Ministry of Finance.

For three wheelers Exercise Duty is completely removed. Accordingly 68% tax levied for three wheelers have been reduced to 40%. The overall taxes charged on conversion unit for three wheelers have been reduced from 40% to 8.5%, Media Centre for National Development reported.

For Motor Cycles earlier 15% custom duty and 15% surcharge was levied. Under the new structure 15% surcharge has been completely removed and custom duty has been reduced from 15% to 5%. For lorries and trucks, exercise duty is reduced by 15%.

At the same time cess tax on import of finished products such as biscuits, tiles, etc., has been continued to make local products competitive in the market against the cheap low quality products getting flooded in the market.

The recent revision of tax structure had been implemented as a measure to encourage local industries and make their products competitive in the market. 15% surcharge that was being imposed on import of raw materials and machinery had been removed.

Artygalle also said that the Tourist Industry needs vehicles for expansion of its activities with the heavy inflow of tourists, and the new tax reduction will immensely help to upgrade the fleet of outdated vehicles