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CMTA proposes sustainable approach to vehicle imports

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CMTA Chairman Charaka Perera
CMTA Chairman Charaka Perera

The Ceylon Motor Traders Association (CMTA) has taken a proactive stance to address recent rumours surrounding the reinstatement of vehicle imports.

With a focus on benefiting the economy, meeting the mobility needs of the masses, and ensuring government revenue, the CMTA has submitted a comprehensive proposal to the relevant authorities.

The proposal is divided into two key parts, first part emphasizes a gradual and staggered approach to lifting the suspension on vehicle imports. The initial phase would involve the reinstatement of two-wheelers and three-wheelers, followed by commercial vehicles, and finally passenger vehicles.

The second part of the scheme proposes imports be subject to an increased tax regime of an additional 130%, with quarterly reductions in the additional tax. This systematic approach aims to bring the tax structure back to its current level within two years, with a 15% reduction each quarter. Such a scheme will severely discourage excessive vehicle imports once the ban is lifted.

One of the critical aspects highlighted by the CMTA is the need for regulated and sustainable import practices that safeguard the country’s foreign exchange reserves. The association firmly opposes the importation of old vehicles, as it will harm the environment, and fuel consumption and also significantly increase the need for the importation of spares leading to a further outflow of forex.

Furthermore, the CMTA discourages the importation of vehicles on supplier credit, as it has the potential to facilitate practices of sending out funds through illegal means to suppliers.

The CMTA’s proposal reflects its commitment to working collaboratively with the relevant authorities to implement a thoughtfully designed framework for vehicle imports. With a focus on long-term sustainability and responsible economic growth, the association seeks to bring about positive changes that benefit the entire nation.

Founded in 1919, the Ceylon Motor Traders Association (CMTA) is the only Ceylon Chamber of Commerce affiliated trade body that represents vehicle manufacturers through their locally appointed franchise holders (commonly called ‘agents’). It is the most senior automotive trade association in the region.

Monday, June 19, 2023 – 01:00

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