The JVP has urged the Government to explain to the public, the manner in which vehicle taxes have been increased, saying that the tax has left the public as well as vehicle dealers in confusion.
JVP Colombo District MP Sunil Handunnetti, in a letter to the Finance Ministry Secretary Dr P.B. Jayasundera, said that the unprecedented tax has inconvenienced the public as well as the business community, and the tax system was not clear.
He said the Government had failed to clearly explain as to which categories the taxes will apply, resulting in confusion, and in some instances, leading to clashes.
Mr. Handunnetti said it was not clear how it applies to those who have paid deposits to car importers, to those who have opened Letters of Credit (LC), those who have already shipped the vehicles and to those who are already in the process of clearing their vehicles.
He said there were instances of car dealers claiming that the tax applies to all categories and increasing prices of all vehicles which are being sold.
Hence, the Government should explain clearly as to how the taxes would apply.
Meanwhile, the dramatic tax increases imposed last Saturday, left car sale dealers in a quandary. The increase in prices of new vehicles ranged from a minimum of Rs. 300,000 to about Rs. 17 million.
Sri Lanka Vehicle Importers’ Association president Sampath Merenchige told the Sunday Times the trade was severely affected, as some of them who have ordered vehicles, are not in a position to purchase them due to the steep increase.
He said that as the LCs have already been opened the importer has to go ahead with the import, with the prospect of the vehicle languishing in the showroom indefinitely.
Mr. Merenchige said vehicle permit holders too have been affected, as many of them cannot afford the new taxes. “As they may not be able to sell the vehicle, many of them are reluctant to go ahead with the purchases”, he added.
He said under the new regulations, as the vehicles imported will be less than one-year-old, the prices also would be higher. “It is very difficult to find vehicles which are less than one-year old. This would mean that we will have to go for almost-new vehicles, and accordingly, the prices too would increase,” he said.
Mr. Merenchige said the new tax system will mainly affect the smaller vehicles. |
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