With the easing of vehicle import restrictions, the public hoped to purchase vehicles at significantly reduced prices. However, this dream has not only faded but has also led to a situation where importing vehicles has become a major challenge, Parliamentarian Dayasiri Jayasekara stated.
Speaking to the media, he further explained, “This Government had raised great expectations among the public regarding vehicle imports during the Presidential and General Elections. However, now the Government has relaxed these restrictions, but the new laws make it nearly impossible to import any vehicles.
“Specifically, four types of taxes are imposed on imported vehicles including based on engine capacity, valuation tax, luxury tax, and an 18 percent VAT. With these additions, the taxes on imported vehicles have increased significantly. As a result, all importers believe that vehicle prices will rise by around 500 percent,” the MP added.
“The Central Bank has clearly stated that vehicles should be imported in a way that does not harm the current vehicle prices in Sri Lanka. Today, Sri Lanka has an artificial vehicle price. Therefore, the Government should have reduced this artificial vehicle price before allowing imports. However, the Government has taken steps to increase their significant tax revenue.”
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