The government indirectly increases the vehicle licence fee by imposing an additional emission levy
The government has indirectly increased the revenue licence renewal fee from the budget by imposing an additional levy of Rs.5000 on vehicle emission certificate, vehicle owners alleged.Vehicle emission tests are a mandatory requirement for obtaining or renewing revenue licenses by paying the annual licence fee at the Divisional Secretariat.
The then Rajapaksa Government has given a five year contract to Laugfs Eco Sri (Pvt) Ltd and Cleanco Lanka (Pvt) Ltd to establish motor vehicle emission testing centers in the country. The contract was signed on July 26, 2008 and the programme was launched on November 17, 2008 –from the Western Province and subsequently extended to the other provinces.
The proposed levy of Rs. 5000 should be paid to the respective Divisional Secretariat and not to the Vehicle Emission Testing (VET) centre when obtaining or renewing revenue license, a senior MTD official said. The three wheelers and Motor cycles, SLTB Busses and Army vehicles have been exempted from paying this levy on the directions of the Finance Minister, he added.
Total of around 4.21 million revenue licences have been issued by the MTD so far this year. Vehicle emission test providers are charging the normal fee ranging between Rs.410 to Rs. 1,650, depending on the vehicle category, CEO of Lauggfs Eco Sri (Pvt) Limited (Vehicle emission test provider) Retired Rear Admiral Damayantha Dharmasiriwardena told the Business Times.
He added that the company remits 10 percent of the total amount collected from vehicle emission testing charges daily to the Motor Traffic Department (MTD).The MTD is carrying out online monitoring daily on the number of vehicles which are under going emission tests at their 84 fixed centres and 26 mobile centres countrywide, he said adding that its an 100 percent fool proof system.
Mr. Dharmasiriwardena noted that his company has paid all the dues including all the other taxes to the MTD and the charges for emission testing are actually regulated by the government authorities.He further pointed out that his company has not received any directive from the Finance Ministry to increase the rates or to pay additional taxes.
The VET fee varies from vehicle category, and from the fee charged, 13 percent has to be paid as taxes and from the remaining amount 10 per cent has to be remitted towards the DMT Emission Trust Fund and 90 percent for the service provider.Under this set up service provider the government is planning to call expression of interests from fresh bidders to involve more service providers to carry out emission testing, a senior government minister told the Business Times. Sri Lanka’s sudden influx of vehicles could exert negative impact on air quality and environment, he added