Import tax makes vehicles unaffordable for middle class

12 November 2012 03:22 am - 0 - {{hitsCtrl.values.hits}}

A A A

The government’s decision to maintain a 200% tax on vehicle imports represents a policy failure in terms of meeting the needs of middle-income citizens seeking to affordably purchase a vehicle, according to Co-President of the Vehicle Importers Association of Lanka (VIAL), K. Deekiriwewa.

“Trying to save foreign exchange is only one aspect of this issue. Sales of cars have dropped by as much as 80% as a result of the government using the maximum duty possible and this has put the idea of owning a vehicle completely out of reach to the average citizen.”

“The government must understand that if they need to conserve foreign exchange there are other more balanced means of doing so. They must look at this issue from a broader perspective. As traders we always have the option of doing the same business elsewhere or diversifying into other fields. Besides the fact that our business cannot survive like this, the general public simply cannot afford to purchase a vehicle of good quality at a reasonable price any longer and that is something the government has to answer for., Deekiriwewa said.

Whilst requests made from VIAL to lower duties were disregarded by the government in Budget 2013, a further 85% tax, or Rs.75,000 fee was added to motor cars under 1,000 cc, a segment which had enjoyed strong sales prior to the duty increases.

Car imports by the end of October plunged by 70% from its peak, according to information analyzed by JB Securities (Pvt) Ltd, following a fiscal tightening package aimed at curbing imports at the start of this year.

Notably, 40 new registrations of BMW 520D vehicles also took place last month, many of which were reportedly purchased through the utilization of duty free permits. In total, 93 luxury cars, across the brands BMW, Mercedes Benz and Audi were purchased in October alone.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Import tax makes vehicles unaffordable for middle class

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Heavy taxes for public, duty free vehicles for MPs, senior officials?

Two racing drivers arrested over Fox Hill tragedy

Ranil’s evolving strategy to win 2024 presidential poll

Not AirAsia bidding to acquire SriLankan: Capital A CEO clarifies

AstraZeneca admits for first time its COVID vaccine can cause rare side effect

Oil and gas exploration halted by prolonged legal dispute

MIRROR CRICKET

Nepal put forward strong squad on T20 World Cup return

Sri Lanka continue unbeaten streak, Netherlands push for top spot in Group B

Wasim Akram to conduct training program for national players

Afghanistan announce T20 World Cup 2024 squad

TODAY'S HEADLINES

Int’l summit avoids Sri Lanka due to beggar menace in Colombo

Ranil invited me to take up position in the government: CBK

NPP accepts Daily Mirror invitation for political debate, Sajith’s confirmation awaited

Three underage girls in love become victims of statutory rape

Nepal put forward strong squad on T20 World Cup return

Sri Lanka continue unbeaten streak, Netherlands push for top spot in Group B

Wasim Akram to conduct training program for national players

Afghanistan announce T20 World Cup 2024 squad