Tax hike on synthetic lubricants alarms local market
View(s):The recent steep rise in duty and tax imposed by the government on synthetic lubricants effective mid-November has alarmed the market as lubricant suppliers are now starting to pass on the hike to the end users, the Ceylon Motor Traders Association (CMTA) disclosed.
The duty and taxes which have been increased by 31 per cent, has forced suppliers in the local lubricant market to increase prices accordingly.
Consumers are now affected adversely as they have to pay substantially higher prices as a result. Local franchised car agencies too are affected as they are forced to pass on a substantial cost increase to the customer, the CMTA said in a media release.
This duty and tax hike will only result in discouraging the vehicle owners from using synthetic lubricants due to the high price, it said.
This is not a welcome development for the country as synthetic lubricants help vehicles to perform better when compared with conventional oils, thereby saving exchange for the country and less emissions, a spokesman of the CMTA pointed out.
With vehicle manufacturers encouraging the use of synthetic lubricants for all types of vehicles, the move by the government will severely impact the vehicle owners, he said.
Synthetic lubricants are proven to be more environmentally friendly, as emission levels are comparatively lower, draining intervals are higher and resultantly more mileage could be achieved, he added.