Individual hybrid car importers rally round, protest over exorbitant tax
Hundreds of individuals who placed orders for hybrid cars have been run over by a budget proposal to increase the tax sharply, and are joining in a huge protest campaign.
On Wednesday, more than 600 individual hybrid vehicle importers spoke to the media at a briefing in Maharagama.
The meeting was organised by those who are forced to pay an extra of Rs. 700,000 to Rs. 1.2 million tax hybrid vehicles imposed with effect from January 29th midnight. Aggrieved parties were brought together through emails and a Facebook page titled ‘LC open for hybrid vehicles before interim budget’ to all individual hybrid vehicle importers.
A victim present at the media briefing told the Business Times that once a Letter of Credit (LC) account is opened and all transactions are done there is no way of reversing it. “No one expected a huge tax concession would be applied for vehicles already purchased and have arrived at the port. Some of us already have our vehicles at the Colombo and Hambantota ports but unable to clear it unless we pay the tax which was imposed all of a sudden. If there was a time frame given in the budget as to when the new tax system would be applied, we would be satisfied,” added the victim.
Another victim said that they took bank loans for the exact value of the vehicle including the tax, but the new tax has become another burden. “Where can we find another Rs. 700,000?,” asked one of the affected persons.
He urged the Government to withdraw this tax at least for LCs opened before the budget.
A committee of individual hybrid vehicle importers was appointed at the briefing to look into different ways to reach the government and explain the situation they are facing. The committee will only exist till a solution to the problem is sought. People present at the briefing were also curious about the payments they have to make to port authorities for keeping their vehicles for more than the intended period. One man said, “A vehicle will be allowed to stay at the port only for seven days. For anything more than that, we have to pay another Rs. 3000”.
This was the 3rd meeting in this series of protests with the previous two held in Kurunegala. People from Negombo, Avissawella, Amblipitiya, Galle, Matara, Colombo and many other suburbs were present at the briefing, said Uthula Saranga Ranaweera, a victim who had taken the initiative in bringing together everyone affected by the tax on hybrid vehicle imports, via email and Facebook.