Luxury vehicle tax deadline ends Nov 30 | Sunday Observer

Luxury vehicle tax deadline ends Nov 30

The Department of Motor Traffic (DMT) has announced that the three-month grace period given to luxury vehicle owners to settle taxes will end on November 30. According to Department sources, no further extension will be provided and all luxury vehicle owners are advised to settle taxes prior to the deadline. By failing to do so they will face the possibility of paying the tax and an additional 50 percent fine, the Department said.

In August the Ministry of Transport and Civil Aviation announced a three-month grace period to vehicle owners who had failed to pay the annual tax for luxury, semi-luxury and semi-luxury dual-purpose vehicles. The Ministry had earlier extended the grace period to September 1 after which it was further extended till November 30. During the grace period, vehicle owners were charged an additional 5 percent fine on special...cabinet approval along with the due tax.

According to the Finance Act No. 15 of 1995, an annual tax should be paid by the registered owner of the vehicle for seven years following the initial registration of the luxury vehicle. The DMT allows the tax to be paid in three instalments. Sources say that despite being advised to pay the second and third tax instalments when insuring the vehicle many owners had avoided payment by only paying in the insurance amount.

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