New vehicle import policy devised to lift automobile ban soon
By: Staff Writer
Colombo (LNW): The Government has already prepared a comprehensive policy and guidelines to lift restrictions of all vehicle imports soon, Trade Minister Nalin Fernando disclosed.
Measures will be taken to allow motor traders to import all types of vehicles including private cars as the country was losing around Rs.300 billion in import tax revenue per year since March 2020, he said.
A special committee has been appointed recently by President Ranil Wickremesinghe to devise the policy and guidelines relating to vehicle imports, Finance Ministry sources confirmed.
Measures will be taken to allow motor traders to import all types of vehicles including private cars as the country was losing around Rs.300 billion in import tax revenue per year since March 2020, he said.
A special committee has been appointed recently by President Ranil Wickremesinghe to devise the policy and guidelines relating to vehicle imports, Finance Ministry sources confirmed.
The new vehicle import policy and guidelines will be presented to the cabinet of ministers for approval, a senior official of the ministry said adding that the future action to lift the import restrictions will be taken accordingly.
The Vehicle Importers Association of Sri Lanka (VIASL) has urged the Government to reconsider the ban imposed on importation.
Issuing a statement, the Association said it strongly condemns the statement made by an unendorsed Association with very similar abbreviations supporting the motor vehicle ban.
The vehicle import ban in Sri Lanka is threatening 100,000 jobs and 350,000-400,000 dependants as well as a number of industries and services which need mobility and transport, a motor vehicle industry association has said.
The import ban is also losing the government revenue which is being raked in by assemblers through tax-arbitrage, the Vehicle Importers Association of Sri Lanka said.
“As per the calculation carried out by VIASL, around 100,000 direct and indirect employees will have to be made redundant if the ban is to continue further,” the VIASL said.
Vehicle importers provide various employment opportunities ranging from accountants, sales executives, marketing executives, drivers, cleaners, security staff, etc.
“Furthermore, service areas such as clearing agents, interior cleaners, mechanics, car carrier operators, and service centers are directly dependent on the importation of motor vehicles.
Vehicle importers, as well as related service providers, have faced severe difficulties maintaining their business premises, paying off bank loans, rent and paying the salaries of their employees.”
The association said domestic vehicle assembly has quality issues as well as a loss of tax revenues.
VIASL strongly believes that this process does not add any value to the country’s economy and is merely designed for tax evasion and higher profit.
