Vehicle Importers Association of Lanka (Vial ) has proposed to the government to introduce a road development tax equivalent to a percentage of the import value of vehicle at the time of its registration with the Department of Motor Traffic. With a view of restricting the imports of vehicles , the association has suggested to [...]

The Sundaytimes Sri Lanka

A road development tax from new vehicles

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Vehicle Importers Association of Lanka (Vial ) has proposed to the government to introduce a road development tax equivalent to a percentage of the import value of vehicle at the time of its registration with the Department of Motor Traffic.

With a view of restricting the imports of vehicles , the association has suggested to appoint a committee comprising representatives of the Treasury , Sri Lanka customs ,the Central Bank , the Department of Motor Traffic and Motor Vehicle Importers Associations to review the requirement of vehicles by categorising it as motor cars, vans lorries and busses and the country’s foreign reserves.

The committee will recommend the number of vehicles that should be imported to meet the requirement considering the position of foreign reserves, a top official of the association said.

Hybrids – the fuel-efficient autos that combine electric motors with internal combustion engines – have now been getting a buzz in Sri Lanka after a cut in taxes to between 51 to 100 percent from 60 to 125 percent based on engine size, he added.

Vial has made an appeal to the Treasury to grant some more concessions to import hybrid vehicles as consumers continue to demand for these vehicles despite the high price due to fuel efficiency especially on the back of increasing fuel prices.

Submitting a proposal for the 2014 budget to the president, Vehicle Importers Association of Lanka has urged the Treasury to allow importers to bring down hybrid cars used in Japan for thee and half years as the price of such vehicles will come down after using it for three years by their owners in Japan.

There fore they requested the Finance Ministry to extend the current period of three years to three and half years as hybrid cars are in fully working condition even if it is used for ten years.

President of the Vehicle Importers Association of Lanka (Vial ) Sampath Merenchige told Business Times that motor traders can buy a three and half year used hybrid vehicle at a price more cheaper than such vehicle being used for two to three years.

He noted that his association has proposed to the government to impose an additional excise duty of Rs. 500,000 per hybrid vehicle used in Japan for three and half years.

It will help to save much needed foreign exchange for the country in the long run by meeting the vehicle demand through the importation of hybrid vehicles.

He disclosed. that the association has made this proposal to be included in the 2014 budget.

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