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Used vehicle importers in a crisis: VIA

10 December 2013 12:48 pm - 24     - {{hitsCtrl.values.hits}}

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The Vehicle Importers Association (VIA) today alleged that the government had created a monopoly for Brand new vehicle importers through this year’s budget by scrapping the concessions which had been given to the used vehicle importers earlier.

The Association Chairman Mahinda Sarathchandra said that the livelihood of more than 600 used vehicle importers and more than 100,000 employees who were benefited from these companies were in a crisis due to the removal of the concessions given to them earlier.

“The government has removed the concessions given to the used car importers in the 2014 budget. This has put our business in a great crisis. Only a handful of brand new vehicle importers have benefitted from this budget proposal and created a monopoly for them in the market,” Mr. Sarathchandra said.

Mr. Sarathchandra said that brand new vehicle importers had misled the government about the used vehicle importers.

“The brand new vehicle importers had misled the government about our business just for their benefit. The 40- year long business we have been doing has come to a stage where we had to close down this business”, he said.

Mr. Sarathchandra rejecting media reports that used vehicle importers engaged in under invoicing and de–registering of vehicles said they had not done anything illegal and said they import re-conditioned vehicles as they have been allowed by the government to do so.

Mr. Sarathchandra also said Vehicle Importers Association had written to the Treasury Secretary Dr. P.B. Jayasundera and President Mahinda Rajapaksa about the plight they have faced due to the budget proposal and were seeking some concession in this regard.

 The government changed the depreciation rates applied on customs duty on used vehicles in the 2014 budget.

The tax currently imposed on used vehicles based on value depreciation was 90% for vehicles used up to six months old, 80% for those used from six months to a year, 75% for vehicles used from a year to 18 months and 70% for vehicles used for 18 months to two years. However, according to post-budget rates a 90% tax would be imposed on all vehicles used for up to two years. (Ajith Siriwardana)
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  Comments - 24

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  • unchikun Tuesday, 10 December 2013 03:17 PM

    There are two sets of people that one can not trust, politicians and used car dealers. Keep off both.

    metoocrazy Wednesday, 11 December 2013 05:32 AM

    please clarify if the Micro vehicles are 'not' to be classed as "not Chinese vehicles."
    Maruti also deliberating assembling cars here.
    if Micro and Maruti can do so, why not the reputed Korean or Japanese manufauturers setup plants here?
    Excluding bad practices by some used car dealers, it is true that even a 2-3 year old Japanese used vehcles are way better than some other (you kow what!) "brand new' vehicles sold by 'Agents'.
    I saw an advt. recently, someone offering to fix Chinese trucks with used Japanese engines.[but used japanese commercial vehicles will last several more years in Sri Lanka without engine replacements, than these so called 'brand new' non Japanese vehicles]
    'patriots' talk about 'locally made' but end up buying japanese, european, korean cars if they could afford to!.
    so called non-Jap 'brand new' stuff are with poor emmission stadards. These 'brand new's' are poluting our land. patriots, be aware.

    Ryan Wednesday, 11 December 2013 05:35 AM

    Theres this country called Sri Lanka, where are you from, mars?

    SL Wednesday, 11 December 2013 05:45 AM

    why can't the government reduces the taxes on new vehicle and encourage to import them instead of encouraging
    people to buy used scrap. A used vehicle is not worth the money we spend on

    Fayad Wednesday, 11 December 2013 06:28 AM

    Used vehicles do not get depreciated in srilanka why ????
    For the buyers this is a good move & for the environment

    mohan Wednesday, 11 December 2013 07:17 AM

    Why not give a car permit to workers from the ME and up to certain limit

    Mangala Wednesday, 11 December 2013 01:06 PM

    of course, what else, everyone knows that. So vote them again and again.

    mohamed asfar Wednesday, 11 December 2013 08:46 AM

    a 5 year used japanese vehicle is better that an indian or chinese brand new vehicle.

    lankaputha Thursday, 12 December 2013 07:44 AM

    600 VIP members and 100,000 employees... Sounds so mad to me. isn't it?

    Nimal Ranasinghe Wednesday, 11 December 2013 03:21 PM

    Roads are filled with vehicles, need to curtail importing vehicles. It is advisable to produce locally to save foreign exchanges which drains out from the country and develop it to export them to other countries with superior quality, so that you could avoid the gap of the balance of payment.

    Country need the good workforces in spite of allowing everybody to do the business as many wants to become rich within a short period which has not been practicable

    Rohith Wednesday, 11 December 2013 10:03 AM

    Here in Australia the price of a 1.8L Honda Civic 4-Door Sedan is only AUD 23,000 (About Rs 2.7 million) which is about 5 month's salary for the average Aussie. In SL the same car is over Rs. 7 million which is about 10 years salary. Sometimes I wonder if we live on the same planet!!

    Be Fair Tuesday, 10 December 2013 01:21 PM

    I think the VIA need to be pragmatic in their approach to go for a consensus on this issue. The VIA has been responsible for sometimes dumping vehicles that were modified after serious damages in Japan. So time that in whatever way things were put right.
    For me I will use the Public Transport system for now

    Sim Wednesday, 11 December 2013 10:29 AM

    That's a good idea

    mahesh Wednesday, 11 December 2013 03:36 AM

    so they want us to buy used junk

    crazyboy Tuesday, 10 December 2013 01:46 PM

    VIA please remember by and large country first not 600 business people who sends out hard earned foreign exchange in place of old vehicle good for scrap.Let us produce our own vehicle through MICRO or manufacturing plant of Maruthi/Zuzuki etc but not Chinese vehicle. We can retain our foreign exchange/ create employment and provide vehicle at affordable price to SriLankan. VIA's 100,000 employees can get employment too

    ranjan Tuesday, 10 December 2013 02:00 PM

    Milton Freidman, Free MArket Economics. Let the market supply what is demanded. Now Govt can maintain this system with regulatory control on harmful items such as alchohol cigarettes and obviously illegal items. But vehicles? yeah tax it but dont restrict it like you have done now. instead of taxing the middle class, why doesnt the govt tax corporations for road usage with their heavy containers and prime movers, & bus companies. Let the average lankan buy a car that makes him happy without taxing him excessively and then trapping him into debt with huuuuge interest.

    gayan Wednesday, 11 December 2013 03:59 AM

    Micro Will fill the country with Chinese Cars. They are the one who will benefit from this tax revision.

    ceycon Wednesday, 11 December 2013 04:04 AM

    Lively hoods of 600 car importers in danger..???

    Well what about the other commoners who toil for scraps these days..??

    Patriot Tuesday, 10 December 2013 02:29 PM

    As countries get richer, they stop importing second hand items and that include vehicles. I agree with 'Be Fair' above for all second hand car dealers are a set of rouges who await to cheat and swindle the public. A good move by the president.

    fazel Wednesday, 11 December 2013 04:35 AM

    Mostly all recondition vehicle from Japan is in high quality less emission than some brand New vehicles from some countries. They spent less exchange for used vehicles

    zeylanicus Wednesday, 11 December 2013 11:24 AM

    The main problem here is that the policy makers/officials get permit vehicles, and then they make policies to jack up the taxes for the common people. Ultimately the costs of permit vehicles are being borne by the people who really pay taxe

    GG Bush Wednesday, 11 December 2013 05:10 AM

    Don't worry Mr.Sarath! yet the cars will be sold, think where the people will end if the price of basic needs and the satple foods increase..
    Government is an invention of man, and now it is time to go for an alternative invention!

    jagger Tuesday, 10 December 2013 02:49 PM

    witch country getting richer


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