RMV to collect Rs. 8 bln despite imports drop
View(s):Amidst the slowing down of vehicle imports due to heavy taxes, the Motor Traffic Department, the third biggest revenue collector for the state, is confident of collecting around Rs. 8 billion this year, its Commissioner General of Motor Traffic S.H. Harischandra told the Business Times.
He said the department collects this money from ‘luxury’ and ‘semi-luxury’ taxes and sales through the register and transfer of vehicles and from other levies. According to official data, the department doubled its revenue to Rs 8.3 billion last year from Rs.4.2 billion in 2010.
Although the registration of new vehicles has dropped, the transfer of vehicles has increased, helping the department to maintain its revenue collection at the same level of last year, he disclosed.
He noted that new vehicle registrations may drop up to 40 per cent this year
However the number of vehicle ownership transfers recorded a new high of over a million up to August this year bringing more revenue to the department, he said.
Sri Lanka has raised annual taxes on ‘luxury’ cars by around 50% in the 2012 budget to increase revenue of the government coffers. The department has earned Rs.717 million from annual taxes on luxury cars last year and it is targeted to double this revenue in 2012, Mr. Harischandra said.
Mr. Harischandra said the department continues to increase its revenue with the revenue collection system being streamlined for the convenience of all motorists. The new system avoids unnecessary delay in handling payments of revenue licences.
Follow @timesonlinelk
Related Posts:
Sri Lanka’s vehicle imports slow downSri Lanka's vehicle registrations have slowed down in the past eight months due to high taxes imposed on vehicle imports, ...
Sri Lanka to modernise Registrar of CompaniesThe Sri Lankan Government is to modernise the Department of Registrar of Companies, introducing an electronic document management system to ...
SL vehicle importers eye next budgetThe Vehicle Importers Association has reiterated to the government the need to assist the industry to come out of its ...
Vehicle emission test certificate ‘at a price’It has been close to four years since the Government commenced the Vehicle Emission Testing Programme, with the objective of ...
Budget 2013: Daunting task of cutting deficitWith 2012 budget targets already gone awry, Treasury officials have begun the preparatory work for the November 2013 budget giving ...