23 March 2017 10:55 am
The Ceylon Motor Traders’ Association (CMTA), a member of the Ceylon Chamber of Commerce, yesterday in a statement raised concerns over the significant increase in duty and taxes on synthetic lubricants.
“The recent steep rise in duty and tax imposed by the government on synthetic lubricants, effective mid-November, is causing alarm in the market, as the lubricant suppliers are now starting to pass on the hike to the end users,” the statement noted.
The duty and taxes on synthetic lubricants have been increased by 31 percent. This has forced the suppliers in the local lubricant market to increase the prices accordingly and as a result, the consumers have to pay substantially higher prices for lubricants.
The local franchise car agencies too are affected as they are forced to pass on a substantial cost increase to the customer.
“Unfortunately, this duty and tax hike will only result in discouraging the vehicle owners from using synthetic lubricants due to the high price.
This is not a welcome development for the country as synthetic lubricants help vehicles to perform better, when compared with conventional oils, thereby saving exchange for the country and less emissions,” the CMTA said in its statement. With vehicle manufacturers encouraging the use of synthetic lubricants for all types of vehicles, the move by the government will severely impact the vehicle owners. Synthetic lubricants are proven to be more environmentally friendly, as emission levels are comparatively lower, draining intervals are higher and resultantly more mileage could be achieved.