Government to lift vehicle import restrictions next year
By: Staff Writer
August 01, Colombo (LNW): The Government is planning to pass a law implementing vehicle import standards to prevent malpractices and irregularities in the current process before removing the present restrictions finance ministry sources said.
The state authorizes are compelled to take this decision in the wake of directives issued by a parliamentary committee on present scheme of importing e-vehicles for foreign expatriate workers.
The gradual increase in dollar reserves and the rise in the value of the rupee will allow the import of vehicles at least by next year, Finance State Minister Ranjith Siyambalapitiya said.
The committee appointed to carry out a comprehensive study to systematically remove restrictions on the import of vehicles has already made its recommendations, he added.
Cabinet of ministers have recently approved the extension of an electrical vehicle import license scheme, for Sri Lankan expatriates, till June 30.
The Chairman of the Committee on Public Finance Dr. Harsha de Silva noted that there is no transparency in the scheme of providing fully electric vehicle licenses to Sri Lankans working abroad.
He issued directive to the Ministry of Finance, the Central Bank, Sri Lanka Customs and the Ministry of Labor and Foreign Employment carryout a full analysis one e-vehicle importation as it appears that there are many issues pertaining to the matter.
Dr de Silva further instructed that a report be submitted within two weeks on this issue. Furthermore, until the analysis is received, it is not possible to give approval to the relevant gazette extending the period of licensing, he added.
Instructions have been given to find out whether foreign remittances, which is the desired objective is received at a significant level through this system.
The committee also stated that through this, vehicles with a tax relief amounting to Rs. 100 million have been imported. It was disclosed that 1,019 licenses have been granted so far and $109.8 million remittances have been received through this.
The officials also said that the value of the licenses granted so far amounts to $46 million, According to Sri Lanka Customs, the Ministry of Foreign Employment has appointed facilitators to import electric vehicles on behalf of migrant workers.
These fraudsters have undervalued the vehicle by registration and deregistration in another country after importing it from the country of manufacture and thereby evade the luxury tax when the vehicle is imported to Sri Lanka.
