Duties on small cars to be revised soon: PM

9 August 2018 06:27 am - 27 - {{hitsCtrl.values.hits}}

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The government intended to revise the import duties imposed on small cars and hybrid vehicles in the near future, Prime Minister Ranil Wickremesinghe informed Parliament yesterday.

The Prime Minister expressed these sentiments in response to a question raised by Joint Opposition MP Bandula Gunawardane in the House last afternoon.

The Prime Minister said the minimum duty rate of Rs 1.5 million for small cars with the engine capacity less than 1,000cc and the minimum duty rate of Rs 1.25 million for hybrid vehicles would be imposed as the increase of vehicle import expenditure had pushed the balance of payments to more negative levels.

Accordingly, he said the vehicle import expenditure within the first five months of 2018 had gone up to the US $ 666 million compared to the US $ 316 million recorded within the first five months of 2017.

The Prime Minister said that the expenditure incurred for the importation of small cars with engine capacity under 1,000cc and hybrid vehicles had accounted to 51 per cent of the total vehicle importation cost in 2017, while it had increased up to 78.9 per cent of the total vehicle import expenditure in 2018.

The Prime Minister refuted the claim made by Mr Bandula Gunawardane that those who opened Letters of Credit to import small cars before August this year were allowed to clear their vehicle by paying the earlier duty rates has been aimed at giving a concession to a selected group.

Mr Wickremesinghe assured that the Government would look into the gold importation scam, which Mr Gunawardane talked of.

Earlier, Mr Gunawardane said gold was being exported hidden in the sand, while the number of gold biscuits, coming into the country, had increased drastically. (Yohan Perera and Ajith Siriwardana)

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Comments - 27

Sunil Thursday, 09 August 2018 06:35 AM

If you look into the gold scam with the same passion that you displayed in solving the bond scam the perpetrators will not have a chance.

southpaw Thursday, 09 August 2018 06:53 AM

Duty increase on cars, Tobacco and Liqour is needed in order to finance the luxury lifestyles of our Politicos, their Family

rew Thursday, 09 August 2018 01:39 PM

All 225 of these so called people's representatives should be put safely behind bars for an extended period. .

Are we fools Thursday, 09 August 2018 06:53 AM

Then why are you imposing

sathees Thursday, 09 August 2018 07:02 AM

Don't you guys discuss these matters at cabinet meeting before implementing? Forward and backwards is not good for Governing!

Massdeen Thursday, 09 August 2018 07:31 AM

If Government improves proper good public transport system specially the railway then people wont go for such cars

Akila Thursday, 09 August 2018 07:53 AM

Too bad ,I though it was a good decision

Mm Thursday, 09 August 2018 09:09 AM

Can someone tell me a single desision this govt took and didn’t change!

Alex Thursday, 09 August 2018 08:08 AM

Every rule,every regulation,every decision makes by this Montessori cabinet is subject to change or reverse in few days. In future we can expect withdrawals of judgments too given by any court.

Caluperuma Thursday, 09 August 2018 08:22 AM

Government shoud increase the Revenue License fee for Luxuray vehicles to encourage car uses to go for smaller vehicles in order to reduce the Cash flow out of the country. This inturn will help to reduce the trafic conjestion as well. In japan Luxury vehicle owners are a limited number as they have to pay high tax . Caluperum

sugath Thursday, 09 August 2018 08:24 AM

Great. No policy government.

Haren Thursday, 09 August 2018 09:07 AM

The policy makers really need a feel of the ground situation. Taxing 150% of the CIF value of a small car, 90% of CIF on a mid-sized car and less than 60% of CIF on a super luxury car simply signals 'rich man's policy'Audi, Mercedes, BMW, Range Rover, Ferrari galore...

varunadhar Thursday, 09 August 2018 09:10 AM

This is a very unhealthy situation. Lack of uniform policies with respect to economic management will only create a lot of uncertainty in different sectors of the country (general public, businesses, professionals, etc.) This will have very negative effects on economic growth due to the uncertainties surrounding long-term decision making.

bandula Thursday, 09 August 2018 09:41 AM

If the Prime Minister is so concerned about the balance of payments why doesn't he stop the issue of duty free permits to politicians and state sector employees so that import of vehicles through duty free permits will cease. This will stop the drain of foreign reserves to bring in high value vehicles with no revenue to the state.

Dhammika Thursday, 09 August 2018 09:44 AM

Pathetic RW - Ruining a country by trying a TRIAL and ERROR system failing all the way .

BuffaloaCitizen Thursday, 09 August 2018 09:51 AM

We are going back to the era of Rajapakse governance, where decisions are indecisive, corrupt

myraspi Thursday, 09 August 2018 09:52 AM

Spineless government. Are you going to compensate the people who are going to loose laks and laks because your tax changes? There should be some sort of clear policy for this. You cannot keep increasing/reducing the taxes like this.Don't blame the people for buying vehicles. It is not the publics fault that the road conditions are bad. Everyone pays taxes except for the politicians. It is up to those politicians to put the tax money to good use.

Dinesh Thursday, 09 August 2018 09:57 AM

The entire transportation system is in disarray.....Trains are on strike or not on schedule, Buses are operated by bunch of goons...No bus service after 7:30 pm. So how does one expect to transport him or herself. How can we move the country forward. Transportation and infrastructure is key to development. My workplace is 20km from home. It is very discouraging to get home after working late.

Lankan in USA Thursday, 09 August 2018 09:58 AM

The Public should use the gong cart. Parliament politickko only use Duty Free vehicle. whose fault. general public.

dickie bird Thursday, 09 August 2018 10:00 AM

Why ? Feeling guilty?

low income earner Thursday, 09 August 2018 10:03 AM

STOP importing Super luxury vehicles for politicians..we will have A surplus.

Suenth Perera Thursday, 09 August 2018 10:28 AM

Import has to curtail due to balance of payment issue as per PM and of course lack of road network. The solution would be luxury bus services with shuttle services.Thereby people at least delay purchase of vehicle. This should be the first priority of the government.

Tissa Thursday, 09 August 2018 10:38 AM

Say anything and everything to get votes, but by now people have made up their minds about you.

Rasheed Thursday, 09 August 2018 11:04 AM

Yes, once the large vehicles stranded at the Car Sales are sold and few containers of small cars under old duty is cleared.

sobers Thursday, 09 August 2018 11:45 AM

What sort of justice are you rendering to the youngsters are starting lives?They also should be convenient in owning vehicles. It is better to curtail Three Wheelers.

Rasheed Thursday, 09 August 2018 12:16 PM

Nowadays policies implemented to satisfy few individuals needs and not for public.

GN Thursday, 09 August 2018 04:55 PM

Yeah makes perfect sense. None of the politicians use anything below 1000cc. So yeah. We are there to pay taxes for you all. Great !

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Duties on small cars to be revised soon: PM

Comments - 27

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