Sri Lanka budget 2022: taxes on vehicle getting into accidents

ECONOMYNEXT – Sri Lanka will charge a tax on vehicles getting into accidents, Finance Minister Basil Rajapaksa said as part of measures to bridge the deficit.

“There are many accidents and this will discourage them,” he told parliament amid objections from the opposition.

“This will be charged from the insurance.”

The tax is likely to push up insurance premiums by making claims go up.

It may also hit insurance firms.

Insurance firms will also be charged an 18 percent financial VAT from the current 15 percent.

Meanwhile private firms which are earning more than 2.0 billion rupees a year will be charged an additional 25 percent corporate tax. (Colombo/Nov12/2021)

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