Vehicle imports seen crashing due to lopsided duty hike
View(s):Sri Lanka’s vehicle imports could plunge to near zero level due to the recent increase in taxes on duty slashed permits given to senior state officials. Motor traders say they are finding it difficult to sell around 1000 luxury cars brought down by using these permits sold to them earlier by officials.
A senior Finance Ministry official said that the Cost, Insurance and Freight (CIF) value of the vehicle, under this scheme, should be US$ 25,000 upto a maximum of $30,000.
A spokesman of Lekraj Automobiles Pvt Ltd said traders would have to jack up the price of vehicles which were already imported to marginalise losses.
As a result of the duty hike, the price of a BMW and AUDI will go up by Rs. 950,000 to Rs.1 million and Montero sports by Rs.1.2 million and Hyundai luxury car by Rs. 900,000, he revealed.
Prices of ‘permits’ issued to state workers to buy tax slashed cars will also come down in the secondary market.
The government’s action to permit senior officials to transfer their vehicles at any time is like a lifetime bonus as they can fetch a sum of Rs.700,000 to Rs. 800,000 per permit even after the duty hike although it had fallen from a maximum price of Rs.1.5 million, he disclosed.
Nalin Welgama, Chairman of Ideal Motors (Pvt) Ltd told the Business Times that the government has hit the motor vehicle industry badly by increasing taxes on three wheelers, two wheelers, tractors, trucks and small cars. These lopsided Treasury regulatons have also shattered the dream of any small man engaged in self-employment to buy a vehicle.
He said that people in emerging areas of North East and South should be given opportunities to come up in their lives fulfilling their aspirations as infrastructure facilities including highways and roads are being constructed on massive scale, he said. Mr. Welgama said that he will make presentations to the Treasury to remedy the situation.
Follow @timesonlinelk
comments powered by Disqus