Price drop in imported vehicles challenges market amid tax hike

Colombo, January 21 (Daily Mirror) - There will be a price drop in certain vehicles, challenging the existing vehicle market prices, as vehicles are imported into the country following an increase in taxes, Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath said.

Addressing a television programme yesterday, he explained the revised process and said that the government has not decided to relax the imports of all types of vehicles.

He mentioned that vehicles will be imported in phases, ensuring the preservation of foreign exchange reserves. As part of this process, there will be an increase in tax percentages, which will subsequently raise the prices.

Vehicle imports were previously suspended due to a shortage of foreign currency. However, a policy decision has been made to resume vehicle imports starting February 1, under a three-stage plan.

Nevertheless, the import of vehicles will proceed cautiously, prioritising the preservation of foreign exchange reserves.