New Year car permit bonanza for 5,000 senior public servants
At least 5,000 senior public servants are to be benefited annually by the government’s move of lifting the three year restriction imposed on transferring duty-free vehicle permits, officials said.
Around 10,000 vehicle permits have been issued by the Finance Ministry since 2010 up to now and it plans to issue an average of 5000 permits per year in the future, a senior official of the Ministry revealed.
The Ministry will release a circular soon calling for applications from public and provincial council officials, who had not bought duty free vehicles since 2007 to apply for import permits with a special duty waiver and removal of the transfer restriction, he said.
According to Ministry sources the tax concessions for public servants start at 50 per cent for 1000 cc vehicles, 55 per cent for 1600 cc vehicles, 60 per cent for 2000 cc vehicles and 70 per cent for 2600 cc vehicles.
All senior public officers entitled to a duty free vehicle are permitted to import one in every five years.
However economic analysts were of the view that by removing the 3-year restriction under the 2013 budget the Sri Lankan government has regularized the earlier illicit practice of selling permits of duty-slashed vehicles of senior public servants and duty –free vehicles of parliamentarians to others.
Accordingly the duty-free cars can be sold just like any other cars in the market and this regulation is also applicable to the existing vehicles imported under tax relief, a senior Finance Ministry official said.
Earlier the duty-free or duty reduced vehicle permit was issued on condition that recipients cannot sell it within three years of paying back the reduced taxes.
The earlier rule of a 5-year restriction was changed to three years in December 2010.
It has been revealed that these car permits are being sold by some public servants at a price of between Rs 700,000 and Rs 1 million.
Some MPs and many ministers continue to sell their permits at prices up to Rs. 15 million, informed sources allege.
Analysts warned that the sale of duty-free or duty slashed vehicles or vehicle permits would become a business and some politically influential persons might start misusing it by obtaining vehicle permits using their influence and selling it at a profit.
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