Two vehicle shipments are stuck in the port as the importers have declined to clear them as a result of the reduced import tax concessions poposed by the government in this year’s budget.

Vehicle Importers’ Association (VIA) President Mahinda Sarathchandra said vehicle importers had not cleared the consignments as the government had failed to restore the import duty concessions given to used vehicles

He said the association conveyed its stand to Treasury Secretary P. B. Jayasundara who had agreed to grant a 10 per cent import duty concession on cars and vans which were less than 6 months old. But Mr. Sarathchandra said a circular had been issued later granting only a 5 per cent duty waiver.

However used vehicles which are less than six months old were not given an import duty concession during this year’s budget as 100 per cent duty was charged on a vehicle considering them as brand new.

Mr. Sarathchandra said the association was now seeking a direct dialogue with President Mahinda Rajapaksa but it was yet to receive an appointment.
The VIA earlier said the price of used vehicles would go up by 25 per cent as a result of the tax revision introduced in this year’s budget.  

As per the earlier system, only 90 per cent of the vehicle value was charged as taxes for a van or car which was six months old at the time of importation. But with the new proposal he said such vehicles would be considered as brand new.

The import tax on a vehicle between six months and one-year was 80 percent earlier and it has been increased to 100 percent this year. In addition, the tax rate on vehicles older than 18 months and less than two years has been increased to 90 percent from the earlier level of 70 per cent.

The VIA President said the price of a used Fiat vehicle would go up by nearly Rs. 300,000 and the price of a Hi Ace van would go up by Rs. 1.5 million as a result of this import tax revision. (Yohan Perera)