Hybrid cars at Hambantota Port up for auction
View(s):A majority of around 2000 imported hybrid cars lying idle at the Hambantota Port will end up at the auction block at the port’s vehicle park, as a large number of small used car importers have failed to clear their vehicles with high taxes due, motor traders said. If the importers fail to clear vehicles before a stipulated date then the authorities have no option other than auctioning it, official sources warned. Finance Minister Ravi Karunanayake has refused to grant concessions for vehicle importers because he was of the view that small and medium scale car dealers were earning huge profits taking advantage of previous government’s tax reduction, Vehicle Importers Association President Mahinda Sarathchandra told the Business Times. He said that small car dealers who import 5 to 10 hybrids using bank overdrafts or loans from finance companies are facing a crisis due to the tax increase on hybrid cars.
Second hand imports had dominated the market, but the government’s move of removing the depreciation table for taxes has made used car imports worthless, he added.
Mr. Sarathchandra revealed that some car importers are now clearing their vehicles from the port but most of them were finding it difficult to clear the vehicles as the price hike due to the taxes, currency fluctuation and delay charges would amount to more than Rs. 1 million extra per vehicle.
Meanwhile the Ceylon Motor Traders Association (CMTA) expects the new policy making mechanism to have a process that does not affect the industry or selected segments of it drastically. It is also important that any policy framework is laid in such a way that it is not changed in the short-term.
This way, it will encourage investment so that the business community can further contribute to the development of the country and not worry about the expected returns, President of the Association Gihan Pilapitiya said.