Car permits valid for local vehicles too

Government officials entitled to import vehicles under duty concessions can make use of the facility to buy locally-assembled vehicles at a reduced price, according to a circular to be issued tomorrow.

A locally-assembled vehicle at Micro Cars Ltd.

Under the circular any company which has more than 51% of local share capital will be able to sell locally-assembled vehicles to public servants at a reduced price. Dr. R. H. S. Samaratunga of the Trade Tariff and Investment Policy Department said the duty concessions given to importers of vehicles would be given to assemblers as well.

“The Government wants to encourage the local industry and buyers are opting to purchase locally as it is easier to carry out the transaction while the cars offered are attractive as well,” Dr. Samaratunga said. The only local car manufacturer in the country is MICRO Cars Ltd. which would reap the benefits of the move.

According to MICRO Managing Director Roy de Silva, the company manufactures 30 cars a month but expects to increase it to 100 by the end of next month with the installation of its second line. The company has already received 300 bookings for its vehicles which are mainly for the SUV range.