Taxes on Fuel in Increasing Trend with more Vehicles in Sri Lanka.

In early 2015 fuel retail prices were reduced and the government collected 45.0 billion rupees as fuel taxes. Previously average annual TAX collection from fuel was only 28.7 billion rupees.

Taxes from fuel has risen six fold in the first four months of 2016 to 17.2 billion rupees with more vehicles on the road .Accordingly fuel consumption too increased.

A finance ministry report said demand was up with the vehicle fleet expanding to 11.6 percent .

There was also a 35 rupee import duty on petrol, which is mostly paid by Lanka IOC, which does not refine fuel domestically.